Greenlight Capital Re (NASDAQ:GLRE) & Berkshire Hathaway (NASDAQ:BRK.B) Head-To-Head Review

Berkshire Hathaway (NYSE:BRK.B) and Greenlight Capital Re (NASDAQ:GLRE) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, profitability, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and price targets for Berkshire Hathaway and Greenlight Capital Re, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berkshire Hathaway 0 0 0 0 N/A
Greenlight Capital Re 0 0 0 0 N/A

Institutional & Insider Ownership

39.2% of Berkshire Hathaway shares are held by institutional investors. Comparatively, 47.1% of Greenlight Capital Re shares are held by institutional investors. 6.1% of Berkshire Hathaway shares are held by company insiders. Comparatively, 21.4% of Greenlight Capital Re shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Berkshire Hathaway and Greenlight Capital Re’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berkshire Hathaway 3.92% 6.10% 3.11%
Greenlight Capital Re -11.02% -10.44% -3.63%

Earnings and Valuation

This table compares Berkshire Hathaway and Greenlight Capital Re’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berkshire Hathaway $254.62 billion 1.70 $81.42 billion $9.78 18.25
Greenlight Capital Re $538.15 million 0.45 -$3.99 million N/A N/A

Berkshire Hathaway has higher revenue and earnings than Greenlight Capital Re.

Volatility and Risk

Berkshire Hathaway has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Greenlight Capital Re has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Summary

Berkshire Hathaway beats Greenlight Capital Re on 7 of the 10 factors compared between the two stocks.

About Berkshire Hathaway

Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. It provides property and casualty insurance and reinsurance, as well as life, accident, and health reinsurance; and operates railroad systems in North America. The company also generates, transmits, and distributes electricity primarily from solar, wind, geothermal, and hydro sources; operates natural gas distribution and storage facilities, interstate pipelines, and compressor and meter stations; and holds interest in coal mining assets. In addition, it offers real estate brokerage services; invests in fixed-income and equity instruments; and engages in manufactured housing and finance business, leasing of transportation equipment, and furniture leasing activities. Further, the company manufactures boxed chocolates and other confectionery products; specialty chemicals and metal cutting tools; flooring, insulation, roofing and engineered, building and engineered components, paints and coatings, and bricks and masonry products; recreational vehicles, apparel products, jewelry, and custom picture framing products; and alkaline batteries. Additionally, it manufactures castings and forged components, machined airframe components, and engineered critical fasteners; airfoil castings; titanium and nickel; and seamless pipes, fittings, and forgings. The company distributes newspapers, televisions, and information; franchises and services quick service restaurants; distributes electronic components; and offers steel and logistics services, professional aviation training programs, and fractional aircraft ownership programs. In addition, it retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle accessories. The company was founded in 1889 and is headquartered in Omaha, Nebraska.

About Greenlight Capital Re

Greenlight Capital Re, Ltd., through its subsidiaries, operates as a property and casualty reinsurer worldwide. The company offers various property reinsurance products and services, including automobile physical damage; personal lines, such as homeowners' insurance; and commercial lines. It also provides casualty reinsurance products and services comprising general liability, motor liability, professional liability, and worker's compensation; and accident and health, mortgage insurance, surety, trade credit, marine, aviation, energy, cyber, and terrorism products. The company markets its products through reinsurance brokers. Greenlight Capital Re, Ltd. was founded in 2004 and is headquartered in Grand Cayman, the Cayman Islands.

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