Becton, Dickinson and Company (BDX) vs Berkshire Hathaway Inc. (BRK-B): Which Is the Better Buy in 2026?
As of 2026-06-19, BDX is undervalued at $144, with a DCF intrinsic value of $190 and a margin of safety of 24%. BRK-B is undervalued at $489, with an intrinsic value of $644 and a margin of safety of 24%. Of the two, BDX has the wider margin of safety.
Rewards
- ★Free cash flow has grown at a 17.2% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $2.63 of earning power — management is an exceptional capital allocator.
- ★FCF yield of 11.4% is historically attractive — the business generates significant cash relative to its price.
- ★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
- ⚠5 insider sales with no purchases in the past 3 months — insiders are reducing their exposure.
- ⚠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
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $144?
The market implies +5.2% Owner Earnings growth, roughly in line with history — reasonably priced.
Standard FCF implies +1.1%, reflecting ongoing growth investment.
What growth rate is the market pricing in at $489?
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
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: BDX vs BRK-B
Is Becton, Dickinson and Company or Berkshire Hathaway Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, BDX trades at a 24.1% margin of safety (intrinsic value $190 vs. price $144), compared to BRK-B's 24.0% margin of safety (intrinsic $644 vs. $489).
Which stock has a wider economic moat, Becton, Dickinson and Company or Berkshire Hathaway Inc.?▼
BDX scores 67/100 (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 Becton, Dickinson and Company in financial distress?▼
BDX's Altman Z-Score of 1.9 places it in the Grey 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, Becton, Dickinson and Company or Berkshire Hathaway Inc.?▼
Becton, Dickinson and Company (BDX) generates a 11.4% free cash flow yield, compared to Berkshire Hathaway Inc.'s 5.8%. 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, Becton, Dickinson and Company or Berkshire Hathaway Inc.?▼
BDX earns 6.3% 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.