Berkshire Hathaway (NYSE: BRK.B) and Endurance Specialty (NYSE:ENH) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Institutional & Insider Ownership
36.8% of Berkshire Hathaway shares are held by institutional investors. Comparatively, 82.7% of Endurance Specialty shares are held by institutional investors. 6.1% of Berkshire Hathaway shares are held by insiders. Comparatively, 5.8% of Endurance Specialty shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This table compares Berkshire Hathaway and Endurance Specialty’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Berkshire Hathaway||$242.14 billion||2.11||$44.94 billion||$18.22||11.36|
Berkshire Hathaway has higher revenue and earnings than Endurance Specialty. Berkshire Hathaway is trading at a lower price-to-earnings ratio than Endurance Specialty, indicating that it is currently the more affordable of the two stocks.
Endurance Specialty pays an annual dividend of $1.52 per share and has a dividend yield of 1.6%. Berkshire Hathaway does not pay a dividend. Endurance Specialty pays out 30.8% of its earnings in the form of a dividend. Berkshire Hathaway has raised its dividend for 7 consecutive years.
This is a summary of current recommendations and price targets for Berkshire Hathaway and Endurance Specialty, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Berkshire Hathaway currently has a consensus target price of $201.33, suggesting a potential downside of 2.72%. Given Berkshire Hathaway’s higher probable upside, research analysts plainly believe Berkshire Hathaway is more favorable than Endurance Specialty.
This table compares Berkshire Hathaway and Endurance Specialty’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Berkshire Hathaway beats Endurance Specialty on 10 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.
Endurance Specialty Company Profile
Endurance Specialty Holdings Ltd. is a holding company. The Company, through its operating subsidiaries in Bermuda, the United States and the United Kingdom, focuses on underwriting specialty lines of personal and commercial property, and casualty insurance and reinsurance. It operates through two segments: Insurance and Reinsurance. In the Insurance segment, it writes agriculture, casualty and other specialty, professional lines, and property, marine/energy and aviation insurance. In the Reinsurance segment, it writes catastrophe, property, casualty, professional lines and specialty reinsurance. Its Insurance and Reinsurance segments both include property-related coverages, which provide insurance or reinsurance of an insurable interest in tangible property for property loss, damage or loss of use. In addition, its Insurance and Reinsurance segments include various casualty insurance and reinsurance coverages, which are concerned with the losses caused by injuries to third parties.
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