Head to Head Analysis: Berkshire Hathaway (BRK.B) versus The Competition
Berkshire Hathaway (NYSE: BRK.B) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its competitors? We will compare Berkshire Hathaway to similar businesses based on the strength of its dividends, analyst recommendations, risk, profitability, earnings, institutional ownership and valuation.
This table compares Berkshire Hathaway and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Berkshire Hathaway Competitors||9.30%||3.85%||2.31%|
Institutional & Insider Ownership
37.1% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 59.7% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 6.1% of Berkshire Hathaway shares are owned by insiders. Comparatively, 15.6% of shares of all “Property & Casualty Insurance” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for Berkshire Hathaway and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Berkshire Hathaway Competitors||629||2318||2196||45||2.32|
Berkshire Hathaway presently has a consensus price target of $201.33, indicating a potential upside of 9.18%. As a group, “Property & Casualty Insurance” companies have a potential upside of 5.95%. Given Berkshire Hathaway’s higher possible upside, analysts plainly believe Berkshire Hathaway is more favorable than its competitors.
Earnings and Valuation
This table compares Berkshire Hathaway and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Berkshire Hathaway||$223.60 billion||$24.07 billion||0.02|
|Berkshire Hathaway Competitors||$11.51 billion||$1.16 billion||123.62|
Berkshire Hathaway has higher revenue and earnings than its competitors. Berkshire Hathaway is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Berkshire Hathaway has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Berkshire Hathaway’s competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.
Berkshire Hathaway competitors beat Berkshire Hathaway on 8 of the 13 factors compared.
About Berkshire Hathaway
Berkshire Hathaway Inc. is a holding company owning subsidiaries engaged in various business activities. Its segments include Insurance, such as GEICO, Berkshire Hathaway Primary Group, General Re Corporation and Berkshire Hathaway Reinsurance Group; Burlington Northern Santa Fe, LLC, which is engaged in the operation of the railroad system; Berkshire Hathaway Energy, which includes regulated electric and gas utility; Manufacturing, which includes manufacturers of various products, including industrial, consumer and building products; McLane Company, which is engaged in the wholesale distribution of groceries and non-food items; Service and retailing, which includes providers of various services, including fractional aircraft ownership programs, aviation pilot training and various retailing businesses, and Finance and financial products, which includes manufactured housing and related consumer financing, transportation equipment, manufacturing and leasing, and furniture leasing.
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