Berkshire Hathaway (NYSE: BRK.A) and Unico American (NASDAQ:UNAM) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.
Insider and Institutional Ownership
10.1% of Berkshire Hathaway shares are held by institutional investors. Comparatively, 27.3% of Unico American shares are held by institutional investors. 5.4% of Berkshire Hathaway shares are held by company insiders. Comparatively, 54.1% of Unico American shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Berkshire Hathaway and Unico American, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Berkshire Hathaway presently has a consensus target price of $295,000.00, indicating a potential downside of 2.64%. Given Berkshire Hathaway’s higher possible upside, analysts clearly believe Berkshire Hathaway is more favorable than Unico American.
Volatility & Risk
Berkshire Hathaway has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Unico American has a beta of -0.53, indicating that its stock price is 153% less volatile than the S&P 500.
This table compares Berkshire Hathaway and Unico American’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Berkshire Hathaway and Unico American’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Berkshire Hathaway||$223.60 billion||2.22||$24.07 billion||$11,356.59||26.68|
|Unico American||$35.27 million||1.32||-$1.40 million||($1.01)||-8.66|
Berkshire Hathaway has higher revenue and earnings than Unico American. Unico American is trading at a lower price-to-earnings ratio than Berkshire Hathaway, indicating that it is currently the more affordable of the two stocks.
Berkshire Hathaway beats Unico American on 11 of the 13 factors compared between 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.
Unico American Company Profile
Unico American Corporation is an insurance holding company. The Company underwrites property and casualty insurance through its insurance company subsidiary. It also provides property, casualty and health insurance through its agency subsidiaries and provides insurance premium financing and membership association services through its other subsidiaries. The Company’s operations are categorized between the Company’s segment, the insurance company operation and other insurance operations. The Company’s remaining operations constitute a range of specialty insurance services. The Company’s insurance company operation is conducted through Crusader Insurance Company (Crusader), its property and casualty insurance company. Crusader is a multiple line property and casualty insurance company. Crusader is licensed as an admitted insurance carrier in the states of Arizona, California, Nevada, Oregon and Washington.
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