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

Dividends

United Insurance pays an annual dividend of $0.24 per share and has a dividend yield of 1.1%. Berkshire Hathaway Inc. Class A does not pay a dividend. United Insurance pays out 25.8% of its earnings in the form of a dividend.

Risk & Volatility

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

Earnings & Valuation

This table compares United Insurance and Berkshire Hathaway Inc. Class A’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
United Insurance $654.42 million 1.36 $10.14 million $0.93 22.45
Berkshire Hathaway Inc. Class A $242.14 billion 1.95 $44.94 billion $8,790.96 32.72

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

Profitability

This table compares United Insurance and Berkshire Hathaway Inc. Class A’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
United Insurance 2.05% 9.11% 2.36%
Berkshire Hathaway Inc. Class A 16.88% 4.91% 2.35%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for United Insurance and Berkshire Hathaway Inc. Class A, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
United Insurance 0 1 3 0 2.75
Berkshire Hathaway Inc. Class A 0 0 3 0 3.00

United Insurance presently has a consensus target price of $21.50, indicating a potential upside of 2.97%. Berkshire Hathaway Inc. Class A has a consensus target price of $333,833.33, indicating a potential upside of 16.07%. Given Berkshire Hathaway Inc. Class A’s stronger consensus rating and higher probable upside, analysts plainly believe Berkshire Hathaway Inc. Class A is more favorable than United Insurance.

Institutional & Insider Ownership

31.2% of United Insurance shares are held by institutional investors. Comparatively, 11.8% of Berkshire Hathaway Inc. Class A shares are held by institutional investors. 52.4% of United Insurance shares are held by company insiders. Comparatively, 4.8% of Berkshire Hathaway Inc. Class A shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Berkshire Hathaway Inc. Class A beats United Insurance on 9 of the 15 factors compared between the two stocks.

About United Insurance

United Insurance Holdings Corp. operates as a property and casualty insurance holding company that sources, writes, and services residential and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners, as well as dwelling fire policies. It also provides commercial multi-peril property insurance, including wind for residential condominium associations; and coverage to policyholders against third-party liability from accidents occurring on their premises, as well as loss or damage to buildings, inventory, or equipment caused by covered cause of loss, such as fire, wind, hail, water, theft, and vandalism. In addition, the company offers flood, equipment breakdown, and identity theft policies. It markets and distributes its products through a network of independent agencies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Texas. United Insurance Holdings Corp. was founded in 1999 and is headquartered in St. Petersburg, Florida.

About Berkshire Hathaway Inc. Class A

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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