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Compare Stocks › AES vs BRK-B

The AES Corporation (AES) vs Berkshire Hathaway Inc. (BRK-B)

AES
The AES Corporation
$14.28
VS
BRK-B
Berkshire Hathaway Inc.
$473.01

Rewards

AES
  • ★Each dollar of retained earnings has created $11.47 of earning power — management is an exceptional capital allocator.
  • ★PEG ratio of 0.81 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★PEG ratio of 0.13 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

AES
  • ⚠Gross margin of 18.4% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠High leverage (2.59x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠Net debt/EBITDA of 8.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
BRK-B
  • ⚠FCF yield of 6.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 15.2x is 72% above the historical average of 8.9x — the stock trades at a premium to its own history.

Key Valuation Metrics

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AES
BRK-B
Valuation
$-3.09B
Free Cash Flow
$61.23B
-30.31%
FCF Yield
6.00%
10.90
Trailing P/E
15.24
5.98
Forward P/E
21.95
Quality & Moat
3.74%
ROIC
4.96%
7.63%
ROE
9.18%
18.40%
Gross Margin
27.78%
0.81
PEG Ratio
0.13
Balance Sheet Safety
2.59
Debt / Equity
0.18
N/A
Interest Coverage
N/A
8.46
Net Debt / EBITDA
-2.28
4.93%
Dividend Yield
N/A
AES: 2Ties: 1BRK-B: 8
AESBRK-B

Historical Fundamentals

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AES

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

BRK-B

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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AES
$-6.40
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.41B
Δ Market Cap
$-9.02B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
BRK-B
$1.66
created per $1 retained over 3 years
Value Creator
Σ Retained
$252.19B
Δ Market Cap
+$417.89B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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AES
Insufficient Data
Enter initial FCF to calculate intrinsic value
Current Price: $14.28
Fair Value: $0.00
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
31.0% Margin of Safety
Price is 31.0% below estimated fair value
Current Price: $473.01
Fair Value: $685.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AES

Requires positive FCF to compute implied growth rate.

BRK-B

What growth rate is the market pricing in at $473?

-0.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.0%

The market implies -0.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.0%, reflecting heavy growth investment.

Economic Moat Score

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AES
38/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
BRK-B
40/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.

Forensic Accounting

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AES
-2.73
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
BRK-B
-2.41
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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AES
Insiders 0.5%Institutions 89.3%Retail & Other 10.2%
No. of Institutional Holders989
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
BRK-B
Insiders 0.3%Institutions 66.2%Retail & Other 33.6%
No. of Institutional Holders5,818
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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AES
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
BRK-B
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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AES
0
Sells (3M)
0
Sells (12M)
KOHAN SHERRY
Officer
$305,250
@ $20.35 · 2024-06-06
MENDOZA TISH
Officer
$1.41M
@ $21.21 · 2024-05-20
DA SANTOS BERNERD R
Officer
$1.40M
@ $21.15 · 2024-05-20
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
BRK-B
0
Sells (3M)
0
Sells (12M)
No open market insider sales found.
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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AES
FearGreed
😐Neutral(51/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
BRK-B
FearGreed
😐Neutral(52/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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AES
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (51)
BRK-B
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (52)
View AES Full AnalysisView BRK-B Full Analysis
AES vs BRK-B: Which Is the Better Buy? | SafetyMargin.io