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Compare Stocks › BEN vs BRK-B

Franklin Resources, Inc. (BEN) vs Berkshire Hathaway Inc. (BRK-B)

BEN
Franklin Resources, Inc.
$23.87
VS
BRK-B
Berkshire Hathaway Inc.
$481.48

Rewards

BEN
  • ★PEG ratio of 0.36 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 $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

BEN
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠FCF yield of 7.3% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Altman Z-Score of 1.41 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
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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BEN
BRK-B
Valuation
$911.60M
Free Cash Flow
$36.80B
7.32%
FCF Yield
3.54%
22.10
Trailing P/E
15.50
8.17
Forward P/E
22.11
Quality & Moat
6.44%
ROIC
11.31%
3.65%
ROE
9.30%
37.04%
Gross Margin
26.15%
0.36
PEG Ratio
N/A
Balance Sheet Safety
0.25
Debt / Equity
0.19
N/A
Interest Coverage
N/A
0.51
Net Debt / EBITDA
-2.15
5.53%
Dividend Yield
N/A
BEN: 3Ties: 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.

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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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
+$417.98B
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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BEN
3.7% Margin of Safety
Price is 3.7% below estimated fair value
Current Price: $23.87
Fair Value: $24.78
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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BEN

What growth rate is the market pricing in at $24?

+10.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +3.4%

The market implies +10.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +3.4%, 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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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
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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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 48.4%Institutions 48.1%Retail & Other 3.5%
No. of Institutional Holders808
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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BEN
0
Buys (3M)
3
Buys (12M)
Total value (12M): $2.14M
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
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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BEN
0
Sells (3M)
1
Sells (12M)
Total value (12M): $7,379
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
😐Neutral(46/100)

"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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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: Neutral (46)
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 BEN Full AnalysisView BRK-B Full Analysis
Franklin Resources, Inc. (BEN) vs Berkshire Hathaway Inc. (BRK-B) Stock Comparison | SafetyMargin.io