Critical Contrast: Berkshire Hathaway Inc. Class B (BRK.B) versus Kinsale Capital Group (KNSL)
Berkshire Hathaway Inc. Class B (NASDAQ: KNSL) and Kinsale Capital Group (NASDAQ:KNSL) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, earnings, dividends, valuation and profitability.
Institutional and Insider Ownership
35.7% of Berkshire Hathaway Inc. Class B shares are owned by institutional investors. Comparatively, 82.7% of Kinsale Capital Group shares are owned by institutional investors. 11.0% of Berkshire Hathaway Inc. Class B shares are owned by insiders. Comparatively, 8.2% of Kinsale Capital Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Berkshire Hathaway Inc. Class B and Kinsale Capital Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Berkshire Hathaway Inc. Class B||19.78%||5.51%||2.71%|
|Kinsale Capital Group||13.52%||12.59%||4.39%|
Kinsale Capital Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.4%. Berkshire Hathaway Inc. Class B does not pay a dividend. Kinsale Capital Group pays out 22.4% of its earnings in the form of a dividend.
Volatility and Risk
Berkshire Hathaway Inc. Class B has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Kinsale Capital Group has a beta of 0.14, suggesting that its stock price is 86% less volatile than the S&P 500.
Valuation & Earnings
This table compares Berkshire Hathaway Inc. Class B and Kinsale Capital Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Berkshire Hathaway Inc. Class B||$242.14 billion||2.25||$44.94 billion||$5.86||37.63|
|Kinsale Capital Group||$186.78 million||7.16||$24.90 million||$1.25||50.50|
Berkshire Hathaway Inc. Class B has higher revenue and earnings than Kinsale Capital Group. Berkshire Hathaway Inc. Class B is trading at a lower price-to-earnings ratio than Kinsale Capital Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings for Berkshire Hathaway Inc. Class B and Kinsale Capital Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Berkshire Hathaway Inc. Class B||0||1||0||0||2.00|
|Kinsale Capital Group||0||1||2||0||2.67|
Berkshire Hathaway Inc. Class B presently has a consensus target price of $210.00, suggesting a potential downside of 4.77%. Kinsale Capital Group has a consensus target price of $63.00, suggesting a potential downside of 0.19%. Given Kinsale Capital Group’s stronger consensus rating and higher probable upside, analysts clearly believe Kinsale Capital Group is more favorable than Berkshire Hathaway Inc. Class B.
Kinsale Capital Group beats Berkshire Hathaway Inc. Class B on 9 of the 16 factors compared between the two stocks.
Berkshire Hathaway Inc. Class B Company Profile
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.
Kinsale Capital Group Company Profile
Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess casualty, general casualty, product liability, professional liability, life sciences, allied health, health care, commercial property, management liability, environmental, public entity, inland marine, and commercial insurance, as well as homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is based in Richmond, Virginia.
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