Head-To-Head Analysis: Old Republic International Corporation (ORI) and Berkshire Hathaway (BRK.B)
Old Republic International Corporation (NYSE: ORI) and Berkshire Hathaway (NYSE:BRK.B) are both mid-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, earnings, valuation, institutional ownership and risk.
Risk and Volatility
Old Republic International Corporation has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Berkshire Hathaway has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500.
Old Republic International Corporation pays an annual dividend of $0.76 per share and has a dividend yield of 4.0%. Berkshire Hathaway does not pay a dividend. Old Republic International Corporation pays out 47.8% of its earnings in the form of a dividend. Old Republic International Corporation has raised its dividend for 35 consecutive years.
Institutional and Insider Ownership
71.4% of Old Republic International Corporation shares are owned by institutional investors. Comparatively, 35.5% of Berkshire Hathaway shares are owned by institutional investors. 2.3% of Old Republic International Corporation shares are owned by company insiders. Comparatively, 11.0% of Berkshire Hathaway shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Old Republic International Corporation and Berkshire Hathaway’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Old Republic International Corporation||7.64%||9.41%||2.26%|
This is a summary of recent ratings and recommmendations for Old Republic International Corporation and Berkshire Hathaway, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Old Republic International Corporation||0||0||0||0||N/A|
Berkshire Hathaway has a consensus price target of $205.00, indicating a potential upside of Infinity. Given Berkshire Hathaway’s higher possible upside, analysts plainly believe Berkshire Hathaway is more favorable than Old Republic International Corporation.
Earnings and Valuation
This table compares Old Republic International Corporation and Berkshire Hathaway’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Old Republic International Corporation||$5.99 billion||0.83||$758.60 million||$1.59||12.02|
Old Republic International Corporation has higher revenue and earnings than Berkshire Hathaway. Berkshire Hathaway is trading at a lower price-to-earnings ratio than Old Republic International Corporation, indicating that it is currently the more affordable of the two stocks.
Berkshire Hathaway beats Old Republic International Corporation on 8 of the 14 factors compared between the two stocks.
About Old Republic International Corporation
Old Republic International Corporation is a holding company. The Company is engaged in business of insurance underwriting and related services. The Company conducts its operations through various regulated insurance company subsidiaries, which are organized into three segments: General Insurance Group, Title Insurance Group and the Republic Financial Indemnity Group (RFIG) Run-off Business. The Company’s General Insurance segment consists of property and liability insurance, and offers coverages to businesses, government and other institutions. The Company’s Title Insurance Group business consists of the issuance of policies to real estate purchasers and investors based upon searches of the public records, which contain information concerning interests in real property. The Company’s RFIG run-off business consists of its mortgage guaranty and consumer credit indemnity (CCI) operations.
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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