United Fire Group (NASDAQ: UFCS) and Berkshire Hathaway (NASDAQ:BRK-A) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitabiliy, risk, analyst recommendations and dividends.

Dividends

United Fire Group pays an annual dividend of $1.12 per share and has a dividend yield of 2.5%. Berkshire Hathaway does not pay a dividend. United Fire Group pays out 61.2% of its earnings in the form of a dividend.

Profitability

This table compares United Fire Group and Berkshire Hathaway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Fire Group 4.07% 4.33% 1.01%
Berkshire Hathaway N/A N/A N/A

Valuation and Earnings

This table compares United Fire Group and Berkshire Hathaway’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
United Fire Group $1.16 billion 0.97 $59.36 million $1.83 24.13
Berkshire Hathaway $229.14 billion 1.92 $43.97 billion N/A N/A

Berkshire Hathaway has higher revenue and earnings than United Fire Group.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for United Fire Group and Berkshire Hathaway, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Fire Group 0 2 0 0 2.00
Berkshire Hathaway 0 1 1 0 2.50

United Fire Group presently has a consensus target price of $46.00, indicating a potential upside of 4.19%. Berkshire Hathaway has a consensus target price of $262,000.00, indicating a potential downside of 1.87%. Given United Fire Group’s higher possible upside, research analysts clearly believe United Fire Group is more favorable than Berkshire Hathaway.

Institutional & Insider Ownership

58.1% of United Fire Group shares are owned by institutional investors. 5.9% of United Fire Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

United Fire Group beats Berkshire Hathaway on 8 of the 14 factors compared between the two stocks.

United Fire Group Company Profile

United Fire Group, Inc., formerly United Fire & Casualty Company, is engaged in the business of writing property and casualty insurance and life insurance and selling annuities. The Company operates in two segments: property and casualty insurance, and life insurance. The Company’s property and casualty insurance segment consists of commercial lines insurance, including surety bonds, personal lines insurance and assumed insurance. Its life insurance segment consists of deferred and immediate annuities, universal life insurance products and traditional life insurance products. Its life insurance segment consists solely of the operations of United Life Insurance Company. On February 1, 2012, the Company completed a holding company reorganization of United Fire Group, Inc., United Fire & Casualty Company and UFC MergeCo, Inc. On March 28, 2011, the Company acquired Mercer Insurance Group, Inc. (Mercer Insurance Group).

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