Berkshire Hathaway (NYSE: BRK.B) and United Insurance Holdings Corp. (NASDAQ:UIHC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Institutional and Insider Ownership

35.3% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 29.3% of United Insurance Holdings Corp. shares are owned by institutional investors. 11.0% of Berkshire Hathaway shares are owned by company insiders. Comparatively, 22.6% of United Insurance Holdings Corp. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Berkshire Hathaway has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, United Insurance Holdings Corp. has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Dividends

United Insurance Holdings Corp. pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Berkshire Hathaway does not pay a dividend. United Insurance Holdings Corp. pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current ratings and price targets for Berkshire Hathaway and United Insurance Holdings Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 1 1 2 0 2.25
United Insurance Holdings Corp. 0 1 2 1 3.00

Berkshire Hathaway currently has a consensus price target of $207.50, suggesting a potential upside of Infinity. United Insurance Holdings Corp. has a consensus price target of $15.25, suggesting a potential downside of 5.22%. Given Berkshire Hathaway’s higher probable upside, equities analysts clearly believe Berkshire Hathaway is more favorable than United Insurance Holdings Corp..

Profitability

This table compares Berkshire Hathaway and United Insurance Holdings Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 9.08% 5.83% 2.66%
United Insurance Holdings Corp. 0.73% 4.99% 1.34%

Valuation & Earnings

This table compares Berkshire Hathaway and United Insurance Holdings Corp.’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway N/A N/A N/A $8.85 N/A
United Insurance Holdings Corp. $559.34 million 1.22 $28.75 million $0.02 804.50

United Insurance Holdings Corp. has higher revenue and earnings than Berkshire Hathaway. Berkshire Hathaway is trading at a lower price-to-earnings ratio than United Insurance Holdings Corp., indicating that it is currently the more affordable of the two stocks.

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.

United Insurance Holdings Corp. Company Profile

United Insurance Holdings Corp. is a property and casualty insurance holding company that sources, writes and services residential property and casualty insurance policies using a network of agents and a group of insurance subsidiaries. The Company’s insurance subsidiary is United Property & Casualty Insurance Company. Its other subsidiaries include United Insurance Management, L.C., the managing general agent that manages substantially all aspects of United Property & Casualty Insurance Company’s business; Skyway Claims Services, LLC, which provides services to its insurance affiliate; UPC Re, which provides a portion of the reinsurance protection purchased by its insurance affiliate. The Company’s principal product is homeowners’ insurance, which it offers in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, North Carolina, Rhode Island, South Carolina and Texas.

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