Analyzing Berkshire Hathaway (BRK.B) and Atlas Financial Holdings (AFH)
Berkshire Hathaway (NYSE: BRK.B) and Atlas Financial Holdings (NASDAQ:AFH) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.
This table compares Berkshire Hathaway and Atlas Financial Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Atlas Financial Holdings||1.67%||-3.32%||-1.03%|
This is a summary of recent ratings for Berkshire Hathaway and Atlas Financial Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Atlas Financial Holdings||0||0||3||0||3.00|
Berkshire Hathaway presently has a consensus price target of $207.50, suggesting a potential upside of Infinity. Atlas Financial Holdings has a consensus price target of $18.50, suggesting a potential upside of 1.09%. Given Berkshire Hathaway’s higher possible upside, equities analysts clearly believe Berkshire Hathaway is more favorable than Atlas Financial Holdings.
Volatility & Risk
Berkshire Hathaway has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Atlas Financial Holdings has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Valuation and Earnings
This table compares Berkshire Hathaway and Atlas Financial Holdings’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Atlas Financial Holdings||$197.16 million||1.12||-$1.70 million||$0.23||79.57|
Berkshire Hathaway has higher revenue, but lower earnings than Atlas Financial Holdings. Berkshire Hathaway is trading at a lower price-to-earnings ratio than Atlas Financial Holdings, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
35.3% of Berkshire Hathaway shares are owned by institutional investors. Comparatively, 79.1% of Atlas Financial Holdings shares are owned by institutional investors. 6.1% of Berkshire Hathaway shares are owned by insiders. Comparatively, 12.7% of Atlas Financial Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
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.
Atlas Financial Holdings Company Profile
Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.
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