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

Insider and Institutional Ownership

58.1% of United Fire Group shares are held by institutional investors. 5.9% of United Fire Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and target prices for Berkshire Hathaway and United Fire Group, as reported by MarketBeat.

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

Berkshire Hathaway currently has a consensus price target of $262,000.00, indicating a potential downside of 1.88%. United Fire Group has a consensus price target of $46.00, indicating a potential upside of 4.05%. Given United Fire Group’s higher probable upside, analysts plainly believe United Fire Group is more favorable than Berkshire Hathaway.

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.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway $229.14 billion 1.92 $43.97 billion N/A N/A
United Fire Group $1.16 billion 0.97 $59.36 million $1.83 24.16

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

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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