Kinsale Capital Group (NASDAQ: KNSL) and Berkshire Hathaway (NYSE:BRK.A) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, valuation, risk, analyst recommendations and earnings.
Insider and Institutional Ownership
83.0% of Kinsale Capital Group shares are owned by institutional investors. Comparatively, 10.7% of Berkshire Hathaway shares are owned by institutional investors. 11.2% of Kinsale Capital Group shares are owned by company insiders. Comparatively, 4.8% of Berkshire Hathaway shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Kinsale Capital Group pays an annual dividend of $0.28 per share and has a dividend yield of 0.5%. Berkshire Hathaway does not pay a dividend. Kinsale Capital Group pays out 22.4% of its earnings in the form of a dividend.
This table compares Kinsale Capital Group and Berkshire Hathaway’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kinsale Capital Group||13.33%||11.76%||4.21%|
This is a breakdown of current recommendations and price targets for Kinsale Capital Group and Berkshire Hathaway, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kinsale Capital Group||0||1||2||0||2.67|
Kinsale Capital Group presently has a consensus target price of $45.50, indicating a potential downside of 14.10%. Berkshire Hathaway has a consensus target price of $315,000.00, indicating a potential upside of 7.42%. Given Berkshire Hathaway’s stronger consensus rating and higher possible upside, analysts clearly believe Berkshire Hathaway is more favorable than Kinsale Capital Group.
Volatility and Risk
Kinsale Capital Group has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, Berkshire Hathaway has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Earnings & Valuation
This table compares Kinsale Capital Group and Berkshire Hathaway’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Kinsale Capital Group||$186.78 million||5.98||$24.90 million||$1.25||42.38|
|Berkshire Hathaway||$242.14 billion||1.99||$44.94 billion||$8,790.96||33.36|
Berkshire Hathaway has higher revenue and earnings than Kinsale Capital Group. Berkshire Hathaway is trading at a lower price-to-earnings ratio than Kinsale Capital Group, indicating that it is currently the more affordable of the two stocks.
About Kinsale Capital Group
Kinsale Capital Group, Inc. provides as a casualty and property insurance products in the United States. Its commercial lines offerings include construction, small business, energy, excess casualty, general casualty, product liability, professional liability, life sciences, allied health, health care, commercial property, management liability, environmental, public entity, inland marine, and commercial insurance, as well as homeowners insurance. The company markets and sells insurance products through a network of independent insurance brokers. Kinsale Capital Group, Inc. was founded in 2009 and is based in Richmond, Virginia.
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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