Berkshire Hathaway (NYSE: BRK.B) is one of 92 public companies in the “Property & Casualty Insurance” industry, but how does it contrast to its peers? We will compare Berkshire Hathaway to similar businesses based on the strength of its institutional ownership, risk, profitability, earnings, valuation, dividends and analyst recommendations.

Institutional & Insider Ownership

35.4% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 60.4% of shares of all “Property & Casualty Insurance” companies are owned by institutional investors. 6.1% of Berkshire Hathaway shares are owned by company insiders. Comparatively, 15.5% of shares of all “Property & Casualty Insurance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 1 1 2 0 2.25
Berkshire Hathaway Competitors 621 2287 2173 44 2.32

Berkshire Hathaway presently has a consensus price target of $207.50, indicating a potential upside of 10.80%. As a group, “Property & Casualty Insurance” companies have a potential upside of 2.41%. Given Berkshire Hathaway’s higher possible upside, equities research analysts clearly believe Berkshire Hathaway is more favorable than its peers.

Earnings and Valuation

This table compares Berkshire Hathaway and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Berkshire Hathaway $223.60 billion $24.07 billion 24.71
Berkshire Hathaway Competitors $11.51 billion $1.16 billion 84.82

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.

Risk and Volatility

Berkshire Hathaway has a beta of 0.87, indicating that its stock price is 13% 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.

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% 5.24% 2.40%
Berkshire Hathaway Competitors 9.30% 4.78% 2.58%

Summary

Berkshire Hathaway peers beat Berkshire Hathaway on 8 of the 13 factors compared.

Berkshire Hathaway 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.

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