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Compare Stocks › BRK-B vs LMT

Berkshire Hathaway Inc. (BRK-B) vs Lockheed Martin Corporation (LMT)

BRK-B
Berkshire Hathaway Inc.
$469.19
VS
LMT
Lockheed Martin Corporation
$517.93

Rewards

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.
LMT
  • ★Lockheed Martin Corporation has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Lockheed Martin Corporation scores 74/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.

Risks

BRK-B
  • ⚠FCF yield of 6.1% suggests reasonable valuation assuming continued moderate growth.
  • ⚠Trailing P/E of 15.1x is 71% above the historical average of 8.9x — the stock trades at a premium to its own history.
LMT
  • ⚠Gross margin of 9.9% is low, suggesting a competitive or commodity-like market with limited pricing power.
  • ⚠FCF yield of 5.8% suggests reasonable valuation assuming continued moderate growth.
  • ⚠High leverage (2.76x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.

Key Valuation Metrics

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BRK-B
LMT
Valuation
$61.23B
Free Cash Flow
$6.91B
6.05%
FCF Yield
5.78%
15.12
Trailing P/E
25.07
21.77
Forward P/E
16.13
Quality & Moat
4.96%
ROIC
23.16%
9.18%
ROE
66.99%
27.78%
Gross Margin
9.91%
0.13
PEG Ratio
1.08
Balance Sheet Safety
0.18
Debt / Equity
2.76
N/A
Interest Coverage
N/A
-2.28
Net Debt / EBITDA
2.35
N/A
Dividend Yield
2.63%
BRK-B: 6Ties: 2LMT: 3
BRK-BLMT

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.

LMT

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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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
LMT
$-1.60
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$8.03B
Δ Market Cap
$-12.81B
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
31.5% Margin of Safety
Price is 31.5% below estimated fair value
Current Price: $469.19
Fair Value: $685.42
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
LMT
36.9% Overvalued
Price is 36.9% above estimated fair value
Current Price: $517.93
Fair Value: $378.20
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 $469?

-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.

LMT

What growth rate is the market pricing in at $518?

+12.1%
Market-Implied Owner Earnings Growth
Standard FCF implies +7.7%

The market implies +12.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +7.7%, 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 5 years of fundamental data.
LMT
74/100
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.
LMT
-2.23
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 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.
LMT
Insiders 0.1%Institutions 75.0%Retail & Other 24.9%
No. of Institutional Holders3,257
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
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
LMT
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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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
LMT
3
Sells (3M)
4
Sells (12M)
Total value (12M): $10.29M
CAHILL TIMOTHY S
Officer
$3.00M
@ $649.47 · 2026-03-11
ULMER GREGORY M
Officer
$1.87M
@ $658.08 · 2026-02-27
HILL STEPHANIE C
Officer
$1.59M
@ $660.64 · 2026-02-24
ST JOHN FRANK A
Chief Operating Officer
$3.83M
@ $491.04 · 2025-10-23
PAUL HARRY EDWARD III
Officer
$312,923
@ $442.61 · 2025-02-26
HILL STEPHANIE C
Officer
$2.12M
@ $442.51 · 2025-02-26
LIGHTFOOT ROBERT M JR
Officer
$1.42M
@ $442.42 · 2025-02-26
HILL STEPHANIE C
Officer
$1.78M
@ $542.72 · 2024-08-01
CAHILL TIMOTHY S
Officer
$2.05M
@ $515.36 · 2024-07-24
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
😐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.
LMT
FearGreed
😨Fear(39/100)

"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: Neutral (50)
LMT
⚪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 (39)
View BRK-B Full AnalysisView LMT Full Analysis