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Compare Stocks › AWK vs BRK-B

American Water Works Company, Inc. (AWK) vs Berkshire Hathaway Inc. (BRK-B): Which Is the Better Buy in 2026?

As of 2026-06-19, AWK is overvalued at $125, with a DCF intrinsic value of $43 and a margin of safety of -188%. BRK-B is undervalued at $489, with an intrinsic value of $644 and a margin of safety of 24%. Of the two, BRK-B has the wider margin of safety.

AWK
American Water Works Company, Inc.
$125.07
VS
BRK-B
Berkshire Hathaway Inc.
$489.46

Rewards

AWK
  • ★Gross margin of 60.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Each dollar of retained earnings has created $2.38 of earning power — management is an exceptional capital allocator.
BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

AWK
  • ⚠PEG ratio of 2.32 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
  • ⚠Net debt/EBITDA of 5.5x indicates heavy leverage — it would take over 4 years of EBITDA to pay off net debt.
  • ⚠Altman Z-Score of 0.96 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
BRK-B
  • ⚠FCF yield of 5.8% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 10.06 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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AWK
BRK-B
Valuation
$-1.90B
Free Cash Flow
$61.23B
-7.77%
FCF Yield
5.80%
22.18
Trailing P/E
14.56
19.07
Forward P/E
22.79
Quality & Moat
5.11%
ROIC
4.96%
10.22%
ROE
10.50%
60.83%
Gross Margin
27.78%
2.32
PEG Ratio
10.06
Balance Sheet Safety
1.41
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
5.47
Net Debt / EBITDA
-2.28
2.79%
Dividend Yield
0.00%
AWK: 4Ties: 3BRK-B: 5
AWKBRK-B

Historical Fundamentals

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AWK

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

$1 Retained Earnings Test

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AWK
$-1.66
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.36B
Δ Market Cap
$-2.25B
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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AWK
188.1% Overvalued
Price is 188.1% above estimated fair value
Current Price: $125.07
Fair Value: $43.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
24.0% Margin of Safety
Price is 24.0% below estimated fair value
Current Price: $489.46
Fair Value: $643.73
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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AWK

Requires positive FCF to compute implied growth rate.

BRK-B

What growth rate is the market pricing in at $489?

+0.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.6%

The market implies +0.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.6%, reflecting heavy growth investment.

Economic Moat Score

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AWK
51/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving reinvestment efficiency 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.
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 4 years of fundamental data.

Forensic Accounting

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AWK
-2.79
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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AWK
Insiders 0.1%Institutions 103.3%
No. of Institutional Holders1,657
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 67.3%Retail & Other 32.4%
No. of Institutional Holders5,905
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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AWK
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
BRK-B
1
Buys (3M)
1
Buys (12M)
Total value (12M): $250,545
O'SULLIVAN MICHAEL J
General Counsel
$250,545
@ $467.43 · 2026-05-06
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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AWK
0
Sells (3M)
0
Sells (12M)
WIKLE MELISSA K.
Officer
$404,766
@ $143.28 · 2025-05-30
NORTON CHERYL D.
Chief Operating Officer
$642,018
@ $138.16 · 2024-11-22
GOSS MARTHA CLARK
Director
$101,424
@ $142.85 · 2024-09-03
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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AWK
FearGreed
😐Neutral(45/100)

"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
😏Greed(65/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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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AWK
⚪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 (45)
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: Greed (65)
View AWK Full AnalysisView BRK-B Full Analysis

Frequently Asked Questions: AWK vs BRK-B

Is American Water Works Company, Inc. or Berkshire Hathaway Inc. more undervalued in 2026?▼

Based on our discounted cash flow model, BRK-B trades at a 24.0% margin of safety (intrinsic value $644 vs. price $489), compared to AWK's -188.1% margin of safety (intrinsic $43 vs. $125).

Which stock has a wider economic moat, American Water Works Company, Inc. or Berkshire Hathaway Inc.?▼

AWK scores 51/100 (Narrow moat), while BRK-B scores 40/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is American Water Works Company, Inc. in financial distress?▼

AWK's Altman Z-Score of 1.0 places it in the Distress zone, signaling elevated bankruptcy risk. BRK-B scores 2.5 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which company has better free cash flow, American Water Works Company, Inc. or Berkshire Hathaway Inc.?▼

Berkshire Hathaway Inc. (BRK-B) generates a 5.8% free cash flow yield, compared to American Water Works Company, Inc.'s -7.8%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, American Water Works Company, Inc. or Berkshire Hathaway Inc.?▼

AWK earns 5.1% ROIC versus BRK-B's 5.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.