Navigators Group (NASDAQ: NAVG) and Berkshire Hathaway (NYSE:BRK.A) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Navigators Group and Berkshire Hathaway, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navigators Group 1 2 1 0 2.00
Berkshire Hathaway 0 1 1 0 2.50

Navigators Group presently has a consensus target price of $51.50, indicating a potential upside of 5.53%. Berkshire Hathaway has a consensus target price of $295,000.00, indicating a potential downside of 1.84%. Given Navigators Group’s higher probable upside, research analysts clearly believe Navigators Group is more favorable than Berkshire Hathaway.

Profitability

This table compares Navigators Group and Berkshire Hathaway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navigators Group 2.79% 2.32% 0.56%
Berkshire Hathaway 7.73% 5.17% 2.36%

Insider & Institutional Ownership

74.0% of Navigators Group shares are held by institutional investors. Comparatively, 10.0% of Berkshire Hathaway shares are held by institutional investors. 24.1% of Navigators Group shares are held by insiders. Comparatively, 5.4% of Berkshire Hathaway shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Navigators Group and Berkshire Hathaway’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Navigators Group $1.20 billion 1.20 $82.72 million $1.15 42.44
Berkshire Hathaway $223.60 billion 2.20 $24.07 billion $11,356.59 26.46

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

Risk & Volatility

Navigators Group has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500. Comparatively, Berkshire Hathaway has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500.

Dividends

Navigators Group pays an annual dividend of $0.24 per share and has a dividend yield of 0.5%. Berkshire Hathaway does not pay a dividend. Navigators Group pays out 20.9% of its earnings in the form of a dividend.

Summary

Berkshire Hathaway beats Navigators Group on 10 of the 15 factors compared between the two stocks.

About Navigators Group

The Navigators Group, Inc. is an insurance holding company. The Company is an international insurance company focused on marine insurance. The Company’s segments include U.S. Insurance, International Insurance (Int’l Insurance), Global Reinsurance (GlobalRe) and Corporate. The Company’s Property and Casualty (P&C) insurance business primarily offers general liability coverage, and umbrella and excess liability coverage to commercial enterprises through its U.S. Insurance and Int’l Insurance segments. It also offers reinsurance products through its GlobalRe segment. It distributes its products through international, national and regional, retail and wholesale insurance brokers. The Company’s U.S. Insurance and Int’l Insurance segments consists of three segments, such as Marine, Property and Casualty (P&C) and Professional Liability. Its GlobalRe products include accident & health (A&H), marine, P&C and professional liability.

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.

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