Berkshire Hathaway (NYSE: BRK.A) is one of 76 public companies in the “Property & Casualty Insurance” industry, but how does it compare to its peers? We will compare Berkshire Hathaway to similar companies based on the strength of its earnings, profitability, dividends, risk, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Berkshire Hathaway and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 7.73% 5.17% 2.36%
Berkshire Hathaway Competitors 9.40% 4.90% 2.70%

Risk & Volatility

Berkshire Hathaway has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Berkshire Hathaway’s peers have a beta of 0.92, indicating that their average stock price is 8% less volatile than the S&P 500.

Valuation and Earnings

This table compares Berkshire Hathaway and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Berkshire Hathaway $223.60 billion $24.07 billion 23.90
Berkshire Hathaway Competitors $13.61 billion $1.37 billion 203.22

Berkshire Hathaway has higher revenue and earnings than its peers. Berkshire Hathaway is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Berkshire Hathaway and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 2 1 0 2.33
Berkshire Hathaway Competitors 617 2224 2087 42 2.31

Berkshire Hathaway currently has a consensus price target of $295,000.00, indicating a potential upside of 8.69%. As a group, “Property & Casualty Insurance” companies have a potential downside of 0.13%. Given Berkshire Hathaway’s stronger consensus rating and higher possible upside, analysts clearly believe Berkshire Hathaway is more favorable than its peers.

Insider & Institutional Ownership

10.2% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 61.9% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 5.4% of Berkshire Hathaway shares are owned by insiders. Comparatively, 14.3% 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 stock will outperform the market over the long term.

Summary

Berkshire Hathaway peers 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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