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Brown-Forman Corporation (BF-B) vs Goldman Sachs Group, Inc. (The) (GS): Which Is the Better Buy in 2026?

As of 2026-08-03, BF-B is overvalued at $29, with a DCF intrinsic value of $19 and a margin of safety of -52%. GS is undervalued at $1020, with an intrinsic value of $481431875452 and a margin of safety of 100%. Of the two, GS has the wider margin of safety.

BF-B
Brown-Forman Corporation
$28.71
VS
GS
Goldman Sachs Group, Inc. (The)
$1019.73

Rewards

BF-B
  • ★Brown-Forman Corporation has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Gross margin of 60.5% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Brown-Forman Corporation scores 87/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
GS
  • ★Gross margin of 82.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Each dollar of retained earnings has created $2.58 of earning power — management is an exceptional capital allocator.

Risks

BF-B
  • ⚠FCF yield of 5.6% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 2.17 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
GS
  • ⚠Altman Z-Score of 0.16 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠Insiders have sold $20.4M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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BF-B
GS
Valuation
$739.63M
Free Cash Flow
N/A
5.61%
FCF Yield
N/A
18.77
Trailing P/E
15.74
16.87
Forward P/E
13.82
Quality & Moat
10.88%
ROIC
2.46%
17.85%
ROE
16.95%
60.54%
Gross Margin
82.08%
2.17
PEG Ratio
1.45
Balance Sheet Safety
0.57
Net Debt / Equity
Net cash
N/A
Interest Coverage
N/A
1.94
Net Debt / EBITDA
N/A
3.22%
Dividend Yield
1.96%
BF-B: 3Ties: 1GS: 5
BF-BGS

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

GS

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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BF-B
$-10.46
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.36B
Δ Market Cap
$-14.20B
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
GS
$0.00
created per $1 retained over 3 years
Value Destroyer
Σ Retained
$26.00B
Δ Market Cap
+$535.62
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
52.4% Overvalued
Price is 52.4% above estimated fair value
Current Price: $28.71
Fair Value: $18.84
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
GS
100.0% Margin of Safety
Price is 100.0% below estimated fair value
Current Price: $1019.73
Fair Value: $481431875452.18
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 $29?

+8.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.3%

The market implies +8.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.3%, reflecting heavy growth investment.

GS

Requires positive FCF to compute implied growth rate.

Economic Moat Score

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BF-B
87/100
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.
GS
65/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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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BF-B
-2.64
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.
GS
-2.00
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.

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 2.8%Institutions 71.3%Retail & Other 25.9%
No. of Institutional Holders817
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.
GS
Insiders 0.5%Institutions 74.8%Retail & Other 24.7%
No. of Institutional Holders3,873
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
GS
0
Buys (3M)
0
Buys (12M)
HESS JOHN B JR.
Director
$2.00M
@ $511.68 · 2025-04-15
JOHNSON KEVIN RONALD
Director
$1.49M
@ $619.02 · 2025-01-17
FLAHERTY MARK A
Director
$29,545
@ $360.30 · 2024-09-27
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)
1
Sells (12M)
Total value (12M): $148,335
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
GS
3
Sells (3M)
15
Sells (12M)
Total value (12M): $78.42M
LESLIE ERICKA T
Officer
$287,951
@ $1151.80 · 2026-07-15
COLEMAN DENIS P.
Chief Financial Officer
$6.68M
@ $973.55 · 2026-05-14
RUEMMLER KATHRYN H
General Counsel
$13.42M
@ $939.07 · 2026-05-06
RUEMMLER KATHRYN H
General Counsel
$634,927
@ $929.61 · 2026-05-01
FREDMAN SHEARA J.
Officer
$9.57M
@ $929.17 · 2026-05-01
SOLOMON DAVID M
Chief Executive Officer
$3.23M
@ $930.70 · 2026-05-01
GOLTEN ALEXANDER SIMON
Officer
$1.04M
@ $936.18 · 2026-04-23
GOLTEN ALEXANDER SIMON
Officer
$1.02M
@ $919.19 · 2026-04-17
COLEMAN DENIS P.
Chief Financial Officer
$10.94M
@ $941.57 · 2026-02-09
SOLOMON DAVID M
Chief Executive Officer
$255,387
@ $938.92 · 2026-01-29
HALIO CAREY
Officer
$2.64M
@ $927.17 · 2026-01-27
RUEMMLER KATHRYN H
General Counsel
$8.89M
@ $927.51 · 2026-01-23
HALIO CAREY
Officer
$1.62M
@ $920.62 · 2026-01-23
FREDMAN SHEARA J.
Officer
$4.49M
@ $923.75 · 2026-01-23
WALDRON JOHN E.
President
$13.69M
@ $750.30 · 2025-08-28
COLEMAN DENIS P.
Chief Financial Officer
$5.41M
@ $724.40 · 2025-07-25
ROGERS JOHN F W
Officer
$4.31M
@ $717.39 · 2025-07-23
SOLOMON DAVID M
Chief Executive Officer
$4.71M
@ $712.31 · 2025-07-23
SOLOMON DAVID M
Chief Executive Officer
$3.04M
@ $607.17 · 2025-05-14
SOLOMON DAVID M
Chief Executive Officer
$1.50M
@ $622.15 · 2025-02-26
GOLTEN ALEXANDER SIMON
Officer
$3.31M
@ $636.25 · 2025-01-28
HALIO CAREY
Officer and Treasurer
$2.32M
@ $636.74 · 2025-01-24
HALIO CAREY
Officer
$965,120
@ $624.67 · 2025-01-21
FREDMAN SHEARA J.
Officer
$1.28M
@ $627.01 · 2025-01-21
RUEMMLER KATHRYN H
General Counsel
$4.76M
@ $634.69 · 2025-01-21
SOLOMON DAVID M
Chief Executive Officer
$4.00M
@ $610.91 · 2024-11-29
VINIAR DAVID A
Director
$3.06M
@ $612.08 · 2024-11-29
ROGERS JOHN F W
Officer
$3.83M
@ $596.36 · 2024-11-06
COLEMAN DENIS P.
Chief Financial Officer
$7.67M
@ $593.03 · 2024-11-06
FREDMAN SHEARA J.
Officer
$1.77M
@ $594.51 · 2024-11-06
SOLOMON DAVID M
Chief Executive Officer
$3.00M
@ $500.29 · 2024-08-15
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
😐Neutral(53/100)

"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.
GS
FearGreed
😐Neutral(49/100)

"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: Neutral (53)
GS
⚪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 (49)
View BF-B Full AnalysisView GS Full Analysis

Frequently Asked Questions: BF-B vs GS

Is Brown-Forman Corporation or Goldman Sachs Group, Inc. (The) more undervalued in 2026?▼

Based on our discounted cash flow model, GS trades at a 100.0% margin of safety (intrinsic value $481431875452 vs. price $1020), compared to BF-B's -52.4% margin of safety (intrinsic $19 vs. $29).

Which stock has a wider economic moat, Brown-Forman Corporation or Goldman Sachs Group, Inc. (The)?▼

BF-B scores 87/100 (Wide moat), while GS scores 65/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Goldman Sachs Group, Inc. (The) in financial distress?▼

GS's Altman Z-Score of 0.2 places it in the Distress zone, signaling elevated bankruptcy risk. BF-B scores 4.3 (Safe zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

Which stock has higher return on invested capital, Brown-Forman Corporation or Goldman Sachs Group, Inc. (The)?▼

BF-B earns 10.9% ROIC versus GS's 2.5%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Brown-Forman Corporation's or Goldman Sachs Group, Inc. (The)'s?▼

BF-B's dividend earns a safety score of 84/100 (Very Safe), compared to GS's 79/100 (Safe). BF-B has raised its dividend for 3 consecutive years.

BF-B vs GS: Which Is the Better Buy in 2026? | SafetyMargin.io