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Berkshire Hathaway Inc. (BRK-B) vs The Hershey Company (HSY): Which Is the Better Buy in 2026?

As of 2026-06-19, BRK-B is undervalued at $489, with a DCF intrinsic value of $644 and a margin of safety of 24%. HSY is overvalued at $173, with an intrinsic value of $144 and a margin of safety of -20%. Of the two, BRK-B has the wider margin of safety.

BRK-B
Berkshire Hathaway Inc.
$489.46
VS
HSY
The Hershey Company
$172.63

Rewards

BRK-B
  • ★Each dollar of retained earnings has created $3.95 of earning power — management is an exceptional capital allocator.
  • ★Net debt/EBITDA of -2.3x means the company holds more cash than debt — a net cash position.
HSY
  • ★The Hershey Company has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★The Hershey Company scores 72/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Management has timed buybacks well — 2 out of 3 years showed value-accretive repurchases.

Risks

BRK-B
  • ⚠FCF yield of 5.8% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 10.06 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
HSY
  • ⚠25 insider sales totaling $101.8M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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BRK-B
HSY
Valuation
$61.23B
Free Cash Flow
$1.53B
5.80%
FCF Yield
4.36%
14.56
Trailing P/E
32.15
22.79
Forward P/E
17.37
Quality & Moat
4.96%
ROIC
19.41%
10.50%
ROE
23.23%
27.78%
Gross Margin
35.03%
10.06
PEG Ratio
1.05
Balance Sheet Safety
Net cash
Net Debt / Equity
1.01
N/A
Interest Coverage
N/A
-2.28
Net Debt / EBITDA
2.13
0.00%
Dividend Yield
3.18%
BRK-B: 5Ties: 1HSY: 6
BRK-BHSY

Historical Fundamentals

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

HSY

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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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
HSY
$-5.53
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.91B
Δ Market Cap
$-10.55B
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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BRK-B
24.0% Margin of Safety
Price is 24.0% below estimated fair value
Current Price: $489.46
Fair Value: $643.73
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
HSY
20.3% Overvalued
Price is 20.3% above estimated fair value
Current Price: $172.63
Fair Value: $143.53
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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BRK-B

What growth rate is the market pricing in at $489?

+0.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +1.6%

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

Standard FCF implies a demanding +1.6%, reflecting heavy growth investment.

HSY

What growth rate is the market pricing in at $173?

+18.8%
Market-Implied Owner Earnings Growth
Standard FCF implies +11.3%

The market implies +18.8% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +11.3%, reflecting heavy growth investment.

Economic Moat Score

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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 4 years of fundamental data.
HSY
72/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by revenue predictability. Margin Stability is the area most vulnerable to competitive pressure.

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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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.
HSY
-2.78
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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BRK-B
Insiders 0.3%Institutions 67.3%Retail & Other 32.4%
No. of Institutional Holders5,905
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.
HSY
Insiders 0.3%Institutions 87.9%Retail & Other 11.8%
No. of Institutional Holders1,935
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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BRK-B
1
Buys (3M)
1
Buys (12M)
Total value (12M): $250,545
O'SULLIVAN MICHAEL J
General Counsel
$250,545
@ $467.43 · 2026-05-06
Open market purchases · includes direct & indirect ownership · excludes option exercises
HSY
0
Buys (3M)
3
Buys (12M)
Total value (12M): $445,411
SCHECHTMAN NATALIE S
Officer
$37,258
@ $186.29 · 2025-11-24
TANNER KIRK L.
Chief Executive Officer
$370,915
@ $185.46 · 2025-11-21
TAFFET STACY
Officer
$37,238
@ $186.19 · 2025-11-21
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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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
HSY
25
Sells (3M)
47
Sells (12M)
Total value (12M): $131.91M
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.63M
@ $181.34 · 2026-06-12
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.29M
@ $176.31 · 2026-06-10
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.67M
@ $183.74 · 2026-06-05
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.91M
@ $195.74 · 2026-05-29
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.90M
@ $195.08 · 2026-05-27
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.85M
@ $192.47 · 2026-05-22
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.75M
@ $191.59 · 2026-05-20
VOSKUIL STEVEN E
Chief Financial Officer
$279,375
@ $186.25 · 2026-05-18
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.79M
@ $189.55 · 2026-05-15
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.74M
@ $191.37 · 2026-05-13
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.72M
@ $185.94 · 2026-05-08
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.52M
@ $184.08 · 2026-05-06
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.68M
@ $184.14 · 2026-05-01
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.84M
@ $191.94 · 2026-04-24
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.72M
@ $190.58 · 2026-04-22
VOSKUIL STEVEN E
Chief Financial Officer
$291,150
@ $194.10 · 2026-04-20
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$3.85M
@ $192.27 · 2026-04-17
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$5.89M
@ $196.46 · 2026-04-15
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$4.15M
@ $207.46 · 2026-04-10
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$6.23M
@ $207.76 · 2026-04-08
ROBBIN-COKER CORDEL
Director
$26,161
@ $202.80 · 2026-04-02
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$2.05M
@ $204.51 · 2026-04-02
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$6.26M
@ $208.60 · 2026-04-01
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$6.42M
@ $214.13 · 2026-03-27
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$4.31M
@ $215.34 · 2026-03-24
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$6.36M
@ $211.92 · 2026-03-20
VOSKUIL STEVEN E
Chief Financial Officer
$325,065
@ $216.71 · 2026-03-18
HERSHEY TRUST CO
Beneficial Owner of more than 10% of a Class of Security
$4.37M
@ $218.58 · 2026-03-17
REIMAN JASON R
Officer
$452,140
@ $226.07 · 2026-02-24
GROVER ROHIT
Officer
$791,245
@ $226.07 · 2026-02-24
VOSKUIL STEVEN E
Chief Financial Officer
$329,490
@ $219.66 · 2026-02-18
VOSKUIL STEVEN E
Chief Financial Officer
$298,005
@ $198.67 · 2026-01-20
ROBBIN-COKER CORDEL
Director
$23,933
@ $184.10 · 2026-01-05
VOSKUIL STEVEN E
Chief Financial Officer
$282,765
@ $188.51 · 2025-12-18
VOSKUIL STEVEN E
Chief Financial Officer
$269,340
@ $179.56 · 2025-11-18
ROBBIN-COKER CORDEL
Director
$50,971
@ $168.22 · 2025-11-03
VOSKUIL STEVEN E
Chief Financial Officer
$281,280
@ $187.52 · 2025-10-20
VOSKUIL STEVEN E
Chief Financial Officer
$283,680
@ $189.12 · 2025-09-18
VOSKUIL STEVEN E
Chief Financial Officer
$267,795
@ $178.53 · 2025-08-18
BUCK MICHELE G
Chief Executive Officer
$3.74M
@ $194.00 · 2025-07-30
BUCK MICHELE G
Chief Executive Officer
$3.57M
@ $185.00 · 2025-07-23
GROVER ROHIT
Officer
$240,120
@ $180.00 · 2025-07-21
VOSKUIL STEVEN E
Chief Financial Officer
$900,000
@ $180.00 · 2025-07-21
BUCK MICHELE G
Chief Executive Officer
$3.47M
@ $180.00 · 2025-07-21
TUROFF JAMES
General Counsel
$227,500
@ $175.00 · 2025-07-01
GROVER ROHIT
Officer
$233,275
@ $175.00 · 2025-07-01
BUCK MICHELE G
Chief Executive Officer
$3.38M
@ $175.00 · 2025-07-01
TUROFF JAMES
General Counsel
$214,500
@ $165.00 · 2025-06-09
GROVER ROHIT
Officer
$219,945
@ $165.00 · 2025-06-09
TUROFF JAMES
General Counsel
$209,040
@ $160.80 · 2025-05-30
BUCK MICHELE G
Chief Executive Officer
$5.02M
@ $160.80 · 2025-05-30
MCCALMAN JENNIFER L.
Officer
$153,025
@ $157.11 · 2025-05-28
MALCOLM ROBERT M.
Director
$907,267
@ $165.32 · 2025-05-02
VOSKUIL STEVEN E
Chief Financial Officer
$540,000
@ $180.00 · 2025-02-25
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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BRK-B
FearGreed
😏Greed(65/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

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.
HSY
FearGreed
😨Fear(28/100)

"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.

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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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: Greed (65)
HSY
⚪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 (28)
View BRK-B Full AnalysisView HSY Full Analysis

Frequently Asked Questions: BRK-B vs HSY

Is Berkshire Hathaway Inc. or The Hershey Company more undervalued in 2026?▼

Based on our discounted cash flow model, BRK-B trades at a 24.0% margin of safety (intrinsic value $644 vs. price $489), compared to HSY's -20.3% margin of safety (intrinsic $144 vs. $173).

Which stock has a wider economic moat, Berkshire Hathaway Inc. or The Hershey Company?▼

HSY scores 72/100 (Wide moat), while BRK-B scores 40/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Is Berkshire Hathaway Inc. in financial distress?▼

BRK-B's Altman Z-Score of 2.5 places it in the Grey zone, signaling elevated bankruptcy risk. HSY scores 4.2 (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 company has better free cash flow, Berkshire Hathaway Inc. or The Hershey Company?▼

Berkshire Hathaway Inc. (BRK-B) generates a 5.8% free cash flow yield, compared to The Hershey Company's 4.4%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Berkshire Hathaway Inc. or The Hershey Company?▼

HSY earns 19.4% ROIC versus BRK-B's 5.0%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

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