Critical Analysis: Berkshire Hathaway (BRK-A) versus Atlas Financial Holdings (NASDAQ:AFH)

Atlas Financial Holdings (NASDAQ: AFH) and Berkshire Hathaway (NASDAQ:BRK-A) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, institutional ownership, profitabiliy, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Atlas Financial Holdings and Berkshire Hathaway’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Atlas Financial Holdings 1.46% -4.19% -1.33%
Berkshire Hathaway N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Atlas Financial Holdings and Berkshire Hathaway, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Atlas Financial Holdings 0 0 3 0 3.00
Berkshire Hathaway 0 1 1 0 2.50

Atlas Financial Holdings currently has a consensus target price of $18.50, indicating a potential upside of 20.13%. Berkshire Hathaway has a consensus target price of $262,000.00, indicating a potential upside of 0.37%. Given Atlas Financial Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Atlas Financial Holdings is more favorable than Berkshire Hathaway.

Institutional & Insider Ownership

79.9% of Atlas Financial Holdings shares are held by institutional investors. 12.7% of Atlas Financial Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Atlas Financial Holdings and Berkshire Hathaway’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Atlas Financial Holdings $184.65 million 1.00 -$3.11 million $0.16 96.26
Berkshire Hathaway $229.14 billion 1.87 $43.97 billion N/A N/A

Berkshire Hathaway has higher revenue and earnings than Atlas Financial Holdings.

Summary

Atlas Financial Holdings beats Berkshire Hathaway on 7 of the 12 factors compared between the two stocks.

Atlas Financial Holdings Company Profile

Atlas Financial Holdings Inc formerly JJR VI Acquisition Corp is a Canada-based company. It is engaged in the business of providing commercial automobile insurance in the United States with a niche market orientation. The Company’s automobile insurance products provide coverage in three areas: liability, accident benefits and physical damage. Liability insurance provides coverage where the insured is responsible for an automobile accident, for the payment for injuries and property damage to third parties. Accident benefit policies or personal injury protection policies provide coverage for loss of income, medical and rehabilitation expenses for insured persons who are injured in an automobile accident, Physical damage coverages provide for the payment of damages to an insured automobile arising from a collision with another object or from other risks. In January 2013, the Company acquired Camelot Services Inc. and its insurance subsidiary, Gateway Insurance Company.




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