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Compare Stocks › AMAT vs BRK-B

Applied Materials, Inc. (AMAT) vs Berkshire Hathaway Inc. (BRK-B)

AMAT
Applied Materials, Inc.
$357.21
VS
BRK-B
Berkshire Hathaway Inc.
$481.48

Rewards

AMAT
  • ★Applied Materials, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Applied Materials, Inc. scores 93/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
BRK-B
  • ★Each dollar of retained earnings has created $1.66 of market value — management is creating shareholder value.
  • ★Net debt/EBITDA of -2.2x means the company holds more cash than debt — a net cash position.

Risks

AMAT
  • ⚠FCF yield of 2.0% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • ⚠Trailing P/E of 36.6x is 81% above the historical average of 20.3x — the stock trades at a premium to its own history.
  • ⚠Insiders have sold $2.0M worth of stock in the past 3 months — significant insider liquidation.
BRK-B
  • ⚠Berkshire Hathaway Inc. scores only 16/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • ⚠Trailing P/E of 15.5x is 75% above the historical average of 8.9x — the stock trades at a premium to its own history.

Key Valuation Metrics

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AMAT
BRK-B
Valuation
$5.70B
Free Cash Flow
$36.80B
2.01%
FCF Yield
3.54%
36.64
Trailing P/E
15.50
25.81
Forward P/E
22.11
Quality & Moat
23.05%
ROIC
11.31%
32.22%
ROE
9.30%
48.72%
Gross Margin
26.15%
0.49
PEG Ratio
N/A
Balance Sheet Safety
0.33
Debt / Equity
0.19
N/A
Interest Coverage
N/A
-0.15
Net Debt / EBITDA
-2.15
0.59%
Dividend Yield
N/A
AMAT: 3Ties: 1BRK-B: 6
AMATBRK-B

Historical Fundamentals

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AMAT

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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AMAT
$6.96
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$17.48B
Δ Market Cap
+$121.60B
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
+$417.98B
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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AMAT
31.0% Margin of Safety
Price is 31.0% below estimated fair value
Current Price: $357.21
Fair Value: $517.74
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
31.1% Margin of Safety
Price is 31.1% below estimated fair value
Current Price: $481.48
Fair Value: $699.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AMAT

What growth rate is the market pricing in at $357?

+17.2%
Market-Implied Owner Earnings Growth
Standard FCF implies +20.1%

The market implies +17.2% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +20.1%, reflecting heavy growth investment.

BRK-B

What growth rate is the market pricing in at $481?

+0.7%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.8%

The market implies +0.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.8%, reflecting heavy growth investment.

Economic Moat Score

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AMAT
93/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Revenue Predictability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.
BRK-B
16/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency 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.

Forensic Accounting

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AMAT
-2.58
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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AMAT
Insiders 0.3%Institutions 85.5%Retail & Other 14.1%
No. of Institutional Holders3,451
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 33.5%
No. of Institutional Holders5,852
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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AMAT
0
Buys (3M)
1
Buys (12M)
Total value (12M): $6.87M
DICKERSON GARY E
Chief Executive Officer
$6.87M
@ $137.30 · 2025-04-03
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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AMAT
2
Sells (3M)
7
Sells (12M)
Total value (12M): $4.22M
SANDERS ADAM
Officer
$202,471
@ $379.16 · 2026-02-24
HILL BRICE
Chief Financial Officer
$1.81M
@ $361.21 · 2026-02-17
SANDERS ADAM
Officer
$155,620
@ $255.53 · 2025-12-01
LITTLE TERI A
Officer
$952,942
@ $238.24 · 2025-11-25
LITTLE TERI A
Officer
$936,321
@ $234.08 · 2025-11-19
SANDERS ADAM
Officer
$100,373
@ $178.60 · 2025-06-24
SANDERS ADAM
Officer
$65,174
@ $144.83 · 2025-04-01
SANDERS ADAM
Officer
$46,808
@ $172.72 · 2025-02-24
IANNOTTI THOMAS J
Director
$2.33M
@ $236.65 · 2024-06-21
RAJA PRABURAM G.
Officer
$12.46M
@ $249.17 · 2024-06-18
DICKERSON GARY E
Chief Executive Officer
$98.58M
@ $246.45 · 2024-06-18
LITTLE TERI A
Officer
$554,050
@ $221.62 · 2024-06-07
LITTLE TERI A
Officer
$1.60M
@ $213.02 · 2024-05-31
HILL BRICE
Chief Financial Officer
$4.45M
@ $222.34 · 2024-05-28
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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AMAT
FearGreed
😐Neutral(57/100)

"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(48/100)

"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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AMAT
⚪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 (57)
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 (48)
View AMAT Full AnalysisView BRK-B Full Analysis
Applied Materials, Inc. (AMAT) vs Berkshire Hathaway Inc. (BRK-B) Stock Comparison | SafetyMargin.io