Montpelier Re (NYSE: MRH) and Berkshire Hathaway (NYSE:BRK.A) are both property & casualty insurance – nec companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Montpelier Re 35.71% 13.24% 6.70%
Berkshire Hathaway 7.73% 5.17% 2.36%

Analyst Recommendations

This is a summary of current recommendations for Montpelier Re and Berkshire Hathaway, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Montpelier Re 0 0 0 0 N/A
Berkshire Hathaway 0 2 1 0 2.33

Berkshire Hathaway has a consensus price target of $295,000.00, indicating a potential upside of 0.29%. Given Berkshire Hathaway’s higher probable upside, analysts clearly believe Berkshire Hathaway is more favorable than Montpelier Re.

Insider & Institutional Ownership

10.0% of Berkshire Hathaway shares are owned by institutional investors. 5.4% of Berkshire Hathaway shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Montpelier Re and Berkshire Hathaway’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Montpelier Re N/A N/A N/A $3.84 11.09
Berkshire Hathaway $223.60 billion 2.16 $24.07 billion $11,356.59 25.90

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

Summary

Berkshire Hathaway beats Montpelier Re on 6 of the 9 factors compared between the two stocks.

About Montpelier Re

Montpelier RE Holdings Ltd. is a holding company. The Company provides customized insurance and reinsurance solutions to the global market. Through its affiliates in Bermuda, it provides institutional and retail investors with direct access to the global property reinsurance market. It operates in three segments: Montpelier Bermuda, which consists of the assets and operations of Montpelier Reinsurance Ltd., which is its wholly owned operating subsidiary based in Pembroke, Bermuda and is registered as a Bermuda Class four insurer; Montpelier at Lloyd’s, which consists of the assets and operations of Montpelier Syndicate 5151, Montpelier Capital Limited, Montpelier at Lloyd’s Limited, Montpelier Underwriting Services Limited and Montpelier Underwriting Inc., and Collateralized Reinsurance, which is marketed under the name Blue Capital. Blue Capital is an asset management platform offering property catastrophe reinsurance-linked investment products to institutional and retail investors.

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.

Receive News & Ratings for Montpelier Re Holdings Ltd. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Montpelier Re Holdings Ltd. and related companies with Analyst Ratings Network's FREE daily email newsletter.