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Compare Stocks › BMY vs BRK-B

Bristol-Myers Squibb Company (BMY) vs Berkshire Hathaway Inc. (BRK-B)

BMY
Bristol-Myers Squibb Company
$58.11
VS
BRK-B
Berkshire Hathaway Inc.
$481.48

Rewards

BMY
  • ★Gross margin of 72.6% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★FCF yield of 9.4% is historically attractive — the business generates significant cash relative to its price.
  • ★PEG ratio of 0.01 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

BMY
  • ⚠High leverage (2.55x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
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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BMY
BRK-B
Valuation
$11.15B
Free Cash Flow
$36.80B
9.42%
FCF Yield
3.54%
16.79
Trailing P/E
15.50
9.46
Forward P/E
22.11
Quality & Moat
16.32%
ROIC
11.31%
38.12%
ROE
9.30%
72.62%
Gross Margin
26.15%
0.01
PEG Ratio
N/A
Balance Sheet Safety
2.55
Debt / Equity
0.19
N/A
Interest Coverage
N/A
1.91
Net Debt / EBITDA
-2.15
4.34%
Dividend Yield
N/A
BMY: 5Ties: 1BRK-B: 4
BMYBRK-B

Historical Fundamentals

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BMY

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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BMY
N/A
Net losses over 3 years — test not applicable
Company had negative cumulative retained earnings
Σ Retained
$-8.52B
Δ Market Cap
$-39.49B
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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BMY
65.6% Overvalued
Price is 65.6% above estimated fair value
Current Price: $58.11
Fair Value: $35.10
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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BMY

What growth rate is the market pricing in at $58?

+9.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +2.7%

The market implies +9.0% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +2.7%, 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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BMY
60/100
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
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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BMY
-2.67
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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BMY
Insiders 0.1%Institutions 83.1%Retail & Other 16.8%
No. of Institutional Holders3,162
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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BMY
0
Buys (3M)
1
Buys (12M)
Total value (12M): $202,215
HIRAWAT SAMIT
Officer
$202,215
@ $47.58 · 2025-04-25
BOERNER CHRISTOPHER S
Chief Executive Officer
$110,096
@ $55.05 · 2025-02-20
HIRAWAT SAMIT
Officer
$100,000
@ $54.85 · 2025-02-14
HIRAWAT SAMIT
Officer
$100,055
@ $54.67 · 2024-11-01
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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BMY
0
Sells (3M)
2
Sells (12M)
Total value (12M): $2.67M
ELKINS DAVID VINCENT
Chief Financial Officer
$2.65M
@ $47.33 · 2025-09-02
SHORT BARTIE WENDY
Officer
$16,719
@ $44.23 · 2025-08-01
HOLZER PHIL M
Officer
$38,930
@ $55.61 · 2024-11-04
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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BMY
FearGreed
😐Neutral(54/100)

"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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BMY
⚪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 (54)
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 BMY Full AnalysisView BRK-B Full Analysis