Berkshire Hathaway (NYSE: BRK-B) and Heritage Insurance Holdings (NYSE:HRTG) are both small-cap financials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent recommendations for Berkshire Hathaway and Heritage Insurance Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 0 0 0 N/A
Heritage Insurance Holdings 0 0 3 0 3.00

Heritage Insurance Holdings has a consensus target price of $17.67, suggesting a potential upside of 10.69%. Given Heritage Insurance Holdings’ higher possible upside, analysts plainly believe Heritage Insurance Holdings is more favorable than Berkshire Hathaway.

Dividends

Heritage Insurance Holdings pays an annual dividend of $0.24 per share and has a dividend yield of 1.5%. Berkshire Hathaway does not pay a dividend. Heritage Insurance Holdings pays out 33.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

61.3% of Heritage Insurance Holdings shares are owned by institutional investors. 16.1% of Heritage Insurance Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Berkshire Hathaway and Heritage Insurance Holdings’ gross revenue, earnings per share 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
Heritage Insurance Holdings $408.34 million 1.16 $43.38 million $0.72 22.17

Berkshire Hathaway has higher revenue and earnings than Heritage Insurance Holdings.

Profitability

This table compares Berkshire Hathaway and Heritage Insurance Holdings’ 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%
Heritage Insurance Holdings 5.07% 5.67% 1.98%

Summary

Heritage Insurance Holdings beats Berkshire Hathaway on 7 of the 13 factors compared between the two stocks.

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.

About Heritage Insurance Holdings

Heritage Insurance Holdings, Inc. (Heritage Insurance) is a property and casualty insurance holding company. The Company provides personal and commercial residential insurance. Through its subsidiary, Heritage Property & Casualty Insurance Company (Heritage P&C), it provides personal residential insurance for single-family homeowners and condominium owners, rental property insurance and commercial residential insurance in the state of Florida and North Carolina. The Company is vertically integrated and controls or manages all aspects of insurance underwriting, customer service, actuarial analysis, distribution and claims processing and adjusting. The Company’s primary products are personal and commercial residential insurance, which it offers only in Florida. As of December 31, 2016, it marketed and wrote personal lines voluntary policies through a network of approximately 1,900 independent agents. It had 150,998 voluntary personal residential policies as of December 31, 2016.

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