Berkshire Hathaway (NYSE: BRK-B) and Allstate Corporation (The) (NYSE:ALL) are both financials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, earnings and profitability.

Profitability

This table compares Berkshire Hathaway and Allstate Corporation (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 7.57% 5.76% 2.65%
Allstate Corporation (The) 7.02% 12.73% 2.24%

Dividends

Allstate Corporation (The) pays an annual dividend of $1.48 per share and has a dividend yield of 1.6%. Berkshire Hathaway does not pay a dividend. Allstate Corporation (The) pays out 21.9% of its earnings in the form of a dividend. Berkshire Hathaway has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for Berkshire Hathaway and Allstate Corporation (The), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 0 0 0 N/A
Allstate Corporation (The) 1 5 6 0 2.42

Allstate Corporation (The) has a consensus target price of $90.27, suggesting a potential downside of 2.45%. Given Allstate Corporation (The)’s higher probable upside, analysts plainly believe Allstate Corporation (The) is more favorable than Berkshire Hathaway.

Institutional & Insider Ownership

76.1% of Allstate Corporation (The) shares are owned by institutional investors. 1.6% of Allstate Corporation (The) shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Berkshire Hathaway and Allstate Corporation (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway $232.80 billion 0.00 $43.46 billion N/A N/A
Allstate Corporation (The) $37.52 billion 0.89 $4.70 billion $6.77 13.67

Berkshire Hathaway has higher revenue and earnings than Allstate Corporation (The).

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.

Allstate Corporation (The) Company Profile

The Allstate Corporation (Allstate) is a holding company for Allstate Insurance Company. The Company’s business is conducted principally through Allstate Insurance Company, Allstate Life Insurance Company and other subsidiaries. It is engaged in the property-liability insurance business and the life insurance, retirement and investment products business. Its segments include Allstate Protection, Allstate Financial, Discontinued Lines and Coverages, and Corporate and Other. The Allstate Protection segment sells private passenger auto, homeowners, and other property-liability insurance products through agencies and directly through contact centers and the Internet. The Allstate Financial segment sells life insurance and voluntary accident and health insurance products. The Corporate and Other segment consists of holding company activities and certain non-insurance operations. Its Discontinued Lines and Coverages segment includes results from property-liability insurance coverage.

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