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Compare Stocks › BLDR vs BRK-B

Builders FirstSource, Inc. (BLDR) vs Berkshire Hathaway Inc. (BRK-B)

BLDR
Builders FirstSource, Inc.
$75.72
VS
BRK-B
Berkshire Hathaway Inc.
$473.01

Rewards

BLDR
  • ★Share count has been reduced by 20% over the past 4 years through buybacks, increasing each share's claim on earnings.
  • ★FCF yield of 10.5% is historically attractive — the business generates significant cash relative to its price.
  • ★Market sentiment is in extreme fear territory (score: 20/100) — historically, periods of fear have often presented buying opportunities.
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

BLDR
  • ⚠ROIC has declined by 28.7 percentage points over the observed period, which may signal competitive erosion.
  • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
  • ⚠Trailing P/E of 28.9x is 94% above the historical average of 14.9x — the stock trades at a premium to its own history.
BRK-B
  • ⚠FCF yield of 6.0% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 15.2x is 72% above the historical average of 8.9x — the stock trades at a premium to its own history.

Key Valuation Metrics

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BLDR
BRK-B
Valuation
$853.28M
Free Cash Flow
$61.23B
10.48%
FCF Yield
6.00%
28.90
Trailing P/E
15.24
12.81
Forward P/E
21.95
Quality & Moat
0.63%
ROIC
4.96%
10.87%
ROE
9.18%
29.89%
Gross Margin
27.78%
2.02
PEG Ratio
0.13
Balance Sheet Safety
1.32
Debt / Equity
0.18
N/A
Interest Coverage
N/A
4.30
Net Debt / EBITDA
-2.28
N/A
Dividend Yield
N/A
BLDR: 4Ties: 1BRK-B: 6
BLDRBRK-B

Historical Fundamentals

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BLDR

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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BLDR
$0.78
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$3.05B
Δ Market Cap
+$2.37B
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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BLDR
69.2% Margin of Safety
Price is 69.2% below estimated fair value
Current Price: $75.72
Fair Value: $245.98
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
BRK-B
31.0% Margin of Safety
Price is 31.0% below estimated fair value
Current Price: $473.01
Fair Value: $685.41
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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BLDR

What growth rate is the market pricing in at $76?

+13.5%
Market-Implied Owner Earnings Growth
Standard FCF implies +4.3%

The market implies +13.5% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +4.3%, reflecting heavy growth investment.

BRK-B

What growth rate is the market pricing in at $473?

-0.3%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.0%

The market implies -0.3% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +1.0%, reflecting heavy growth investment.

Economic Moat Score

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BLDR
46/100
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.
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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BLDR
-2.87
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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BLDR
Insiders 2.7%Institutions 100.3%
No. of Institutional Holders1,059
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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BLDR
1
Buys (3M)
4
Buys (12M)
Total value (12M): $60.73M
LEVY PAUL S
Director
$4.39M
@ $87.73 · 2026-03-13
VANCE TODD
Officer
$224,994
@ $115.50 · 2025-06-10
CHARLES DIRKSON R
Director
$548,350
@ $109.67 · 2025-05-27
LEVY PAUL S
Director
$55.57M
@ $111.15 · 2025-05-09
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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BLDR
0
Sells (3M)
1
Sells (12M)
Total value (12M): $181,062
JOHNSON TIMOTHY D
General Counsel
$181,062
@ $144.85 · 2025-08-22
RUSH DAVID E.
Director
$2.53M
@ $140.82 · 2025-02-27
CHRISTOPHE CLEVELAND A
Director
$1.78M
@ $178.41 · 2024-11-07
STEINKE CRAIG ARTHUR
Director
$4.61M
@ $153.68 · 2024-08-08
HILLER MICHAEL
Officer
$776,344
@ $159.25 · 2024-05-30
MCCROBIE PAUL M
Officer
$1.55M
@ $170.11 · 2024-05-24
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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BLDR
FearGreed
🥶Extreme Fear(20/100)

"Mr. Market is panicking — potential buying opportunity if fundamentals are strong"

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(52/100)

"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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BLDR
⚪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: Extreme Fear (20)
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 (52)
View BLDR Full AnalysisView BRK-B Full Analysis
BLDR vs BRK-B: Which Is the Better Buy? | SafetyMargin.io