Berkshire Hathaway (BRK.A) versus Donegal Group (DGICB) Head-To-Head Analysis

Berkshire Hathaway (NYSE:BRK.A) and Donegal Group (NASDAQ:DGICB) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.

Profitability

This table compares Berkshire Hathaway and Donegal Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 25.50% 6.20% 3.14%
Donegal Group -2.65% -4.19% -1.00%

Volatility & Risk

Berkshire Hathaway has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Donegal Group has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Institutional & Insider Ownership

1.6% of Donegal Group shares are held by institutional investors. 4.8% of Berkshire Hathaway shares are held by company insiders. Comparatively, 7.2% of Donegal Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Berkshire Hathaway and Donegal Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway $242.14 billion 2.09 $44.94 billion $8,790.96 35.07
Donegal Group $739.03 million 0.46 $7.11 million N/A N/A

Berkshire Hathaway has higher revenue and earnings than Donegal Group.

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 0 1 0 3.00
Donegal Group 0 0 0 0 N/A

Berkshire Hathaway currently has a consensus price target of $378,000.00, suggesting a potential upside of 22.60%. Given Berkshire Hathaway’s higher possible upside, equities research analysts clearly believe Berkshire Hathaway is more favorable than Donegal Group.

Dividends

Donegal Group pays an annual dividend of $0.50 per share and has a dividend yield of 4.2%. Berkshire Hathaway does not pay a dividend.

Summary

Berkshire Hathaway beats Donegal Group on 9 of the 12 factors compared between the two stocks.

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.

About Donegal Group

Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. The company offers private passenger automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents, as well as protection against loss from damage to automobiles. It also offers homeowners policies, which provide coverage for damage to residences and their contents from a range of perils, including fire, lightning, windstorm, and theft; and liability of the insured arising from injury to other persons or their property. In addition, the company offers commercial automobile policies that provide protection against liability for bodily injury and property damage arising from automobile accidents and protection against loss from damage to automobiles owned by the insured; commercial multi-peril policies that provide protection to businesses against various perils, primarily combining liability and physical damage coverages; and workers' compensation policies, which provide benefits to employees for injuries sustained during employment. Donegal Group Inc., through its interest in Donegal Financial Services Corporation, operates a savings bank. The company markets its insurance products through a network of approximately 2,400 independent insurance agencies. Donegal Group Inc. was founded in 1986 and is headquartered in Marietta, Pennsylvania. Donegal Group Inc. is a subsidiary of Donegal Mutual Insurance Company.

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