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Compare Stocks › BEN vs BRK-B

Franklin Resources, Inc. (BEN) vs Berkshire Hathaway Inc. (BRK-B): Which Is the Better Buy in 2026?

As of 2026-06-19, BEN is fairly valued at $33, with a DCF intrinsic value of $37 and a margin of safety of 11%. 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.

BEN
Franklin Resources, Inc.
$33.05
VS
BRK-B
Berkshire Hathaway Inc.
$489.46

Rewards

BEN
  • ★PEG ratio of 0.41 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.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

BEN
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Trailing P/E of 25.2x is 30% above the historical average of 19.5x — the stock trades at a premium to its own history.
  • ⚠Altman Z-Score of 1.41 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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BEN
BRK-B
Valuation
$-242.14M
Free Cash Flow
$61.23B
-1.41%
FCF Yield
5.80%
25.23
Trailing P/E
14.56
11.09
Forward P/E
22.79
Quality & Moat
6.81%
ROIC
4.96%
6.70%
ROE
10.50%
37.36%
Gross Margin
27.78%
0.41
PEG Ratio
10.06
Balance Sheet Safety
0.06
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
0.48
Net Debt / EBITDA
-2.28
3.98%
Dividend Yield
0.00%
BEN: 5Ties: 1BRK-B: 6
BENBRK-B

Historical Fundamentals

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BEN

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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BEN
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-74.9M
Δ Market Cap
$-733.3M
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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BEN
10.8% Margin of Safety
Price is 10.8% below estimated fair value
Current Price: $33.05
Fair Value: $37.06
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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BEN

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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BEN
47/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving roic consistency 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.
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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BEN
-2.53
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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BEN
Insiders 48.5%Institutions 51.4%Retail & Other 0.1%
No. of Institutional Holders831
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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BEN
0
Buys (3M)
2
Buys (12M)
Total value (12M): $2.13M
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$1.06M
@ $21.20 · 2025-11-20
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$1.07M
@ $21.49 · 2025-11-18
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$7,442
@ $17.72 · 2025-04-04
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$1.96M
@ $19.57 · 2025-03-04
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$1.91M
@ $19.08 · 2024-09-11
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$1.98M
@ $19.84 · 2024-08-29
JOHNSON JENNIFER M
Chief Executive Officer
$249,738
@ $19.66 · 2024-08-28
JOHNSON JENNIFER M
Chief Executive Officer
$396,021
@ $20.95 · 2024-08-23
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$4.56M
@ $22.80 · 2024-06-21
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$2.23M
@ $22.29 · 2024-06-18
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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BEN
0
Sells (3M)
0
Sells (12M)
JOHNSON CHARLES B
Beneficial Owner of more than 10% of a Class of Security
$7,379
@ $17.57 · 2025-04-04
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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BEN
FearGreed
😏Greed(66/100)

"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.
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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BEN
⚪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 (66)
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 BEN Full AnalysisView BRK-B Full Analysis

Frequently Asked Questions: BEN vs BRK-B

Is Franklin Resources, 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 BEN's 10.8% margin of safety (intrinsic $37 vs. $33).

Which stock has a wider economic moat, Franklin Resources, Inc. or Berkshire Hathaway Inc.?▼

BEN scores 47/100 (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 Franklin Resources, Inc. in financial distress?▼

BEN's Altman Z-Score of 1.4 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, Franklin Resources, Inc. or Berkshire Hathaway Inc.?▼

Berkshire Hathaway Inc. (BRK-B) generates a 5.8% free cash flow yield, compared to Franklin Resources, Inc.'s -1.4%. 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, Franklin Resources, Inc. or Berkshire Hathaway Inc.?▼

BEN earns 6.8% 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.