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Compare Stocks › BF-B vs BRK-B

Brown-Forman Corporation (BF-B) vs Berkshire Hathaway Inc. (BRK-B)

BF-B
Brown-Forman Corporation
$24.82
VS
BRK-B
Berkshire Hathaway Inc.
$467.98

Rewards

BF-B
  • ★Brown-Forman Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Brown-Forman Corporation scores 81/100 on the Economic Moat Score (Wide Moat), with margin stability 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 $3.95 of earning power — management is an exceptional capital allocator.
  • ★PEG ratio of 0.13 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.

Risks

BF-B
  • ⚠Each dollar of retained earnings has produced only $0.23 of earning power — shareholders may have been better served by dividends.
  • ⚠FCF yield of 5.3% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 11.10 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
BRK-B
  • ⚠FCF yield of 6.1% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 15.1x is 70% above the historical average of 8.9x — the stock trades at a premium to its own history.

Key Valuation Metrics

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BF-B
BRK-B
Valuation
$598.75M
Free Cash Flow
$61.23B
5.26%
FCF Yield
6.07%
14.43
Trailing P/E
15.08
14.60
Forward P/E
21.72
Quality & Moat
14.44%
ROIC
4.96%
21.29%
ROE
9.18%
59.34%
Gross Margin
27.78%
11.10
PEG Ratio
0.13
Balance Sheet Safety
0.67
Debt / Equity
0.18
N/A
Interest Coverage
N/A
1.95
Net Debt / EBITDA
-2.28
3.58%
Dividend Yield
N/A
BF-B: 4Ties: 2BRK-B: 5
BF-BBRK-B

Historical Fundamentals

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BF-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.

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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BF-B
$-13.00
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.47B
Δ Market Cap
$-19.17B
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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BF-B
4.0% Overvalued
Price is 4.0% above estimated fair value
Current Price: $24.82
Fair Value: $23.85
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
31.7% Margin of Safety
Price is 31.7% below estimated fair value
Current Price: $467.98
Fair Value: $685.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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BF-B

What growth rate is the market pricing in at $25?

+4.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +9.6%

The market implies +4.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +9.6%, reflecting heavy growth investment.

BRK-B

What growth rate is the market pricing in at $468?

-0.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +0.8%

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

Standard FCF implies a demanding +0.8%, reflecting heavy growth investment.

Economic Moat Score

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BF-B
81/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability 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
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 5 years of fundamental data.

Forensic Accounting

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BF-B
-2.21
Possible 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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BF-B
Insiders 2.9%Institutions 76.6%Retail & Other 20.4%
No. of Institutional Holders870
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 33.6%
No. of Institutional Holders5,818
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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BF-B
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
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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BF-B
0
Sells (3M)
2
Sells (12M)
Total value (12M): $881,206
WHITING LAWSON E
Chief Executive Officer
$148,335
@ $31.00 · 2025-12-04
WHITING LAWSON E
Chief Executive Officer
$732,871
@ $31.00 · 2025-07-23
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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BF-B
FearGreed
😨Fear(21/100)

"Market is pessimistic — investigate whether fears are temporary or structural"

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(50/100)

"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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BF-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: Fear (21)
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 (50)
View BF-B Full AnalysisView BRK-B Full Analysis
BF-B vs BRK-B: Which Is the Better Buy? | SafetyMargin.io