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Compare Stocks › BRK-B vs LULU

Berkshire Hathaway Inc. (BRK-B) vs lululemon athletica inc. (LULU): 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%. LULU is undervalued at $112, with an intrinsic value of $235 and a margin of safety of 53%. Of the two, LULU has the wider margin of safety.

BRK-B
Berkshire Hathaway Inc.
$489.46
VS
LULU
lululemon athletica inc.
$111.77

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.
LULU
  • ★lululemon athletica inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★lululemon athletica inc. scores 93/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Free cash flow has grown at a 41.1% CAGR over the past 4 years, demonstrating strong earnings power growth.

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.
LULU

    Key Valuation Metrics

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    BRK-B
    LULU
    Valuation
    $61.23B
    Free Cash Flow
    $1.13B
    5.80%
    FCF Yield
    8.93%
    14.56
    Trailing P/E
    9.05
    22.79
    Forward P/E
    9.74
    Quality & Moat
    4.96%
    ROIC
    14.25%
    10.50%
    ROE
    32.03%
    27.78%
    Gross Margin
    55.69%
    10.06
    PEG Ratio
    0.64
    Balance Sheet Safety
    Net cash
    Net Debt / Equity
    0.13
    N/A
    Interest Coverage
    N/A
    -2.28
    Net Debt / EBITDA
    0.24
    0.00%
    Dividend Yield
    0.00%
    BRK-B: 3Ties: 1LULU: 8
    BRK-BLULU

    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.

    LULU

    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
    LULU
    $-10.53
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $4.94B
    Δ Market Cap
    $-52.08B
    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
    LULU
    52.5% Margin of Safety
    Price is 52.5% below estimated fair value
    Current Price: $111.77
    Fair Value: $235.32
    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.

    LULU

    What growth rate is the market pricing in at $112?

    -4.3%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +0.4%

    The market implies -4.3% Owner Earnings growth, below historical trends — potential opportunity.

    Standard FCF implies a more demanding +0.4%, reflecting heavy growth investment expected to generate future returns.

    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.
    LULU
    93/100
    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.

    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.
    LULU
    -1.92
    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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    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.
    LULU
    Insiders 4.7%Institutions 82.5%Retail & Other 12.8%
    No. of Institutional Holders1,393
    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
    LULU
    1
    Buys (3M)
    2
    Buys (12M)
    Total value (12M): $1.49M
    MAESTRINI ANDRE
    Chief Executive Officer
    $494,590
    @ $151.02 · 2026-04-01
    BERGH CHARLES V
    Director
    $999,978
    @ $164.20 · 2026-03-20
    MCDONALD CALVIN
    Chief Executive Officer
    $1.04M
    @ $260.00 · 2024-09-03
    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
    LULU
    1
    Sells (3M)
    5
    Sells (12M)
    Total value (12M): $9.90M
    NEUBURGER NICOLE
    Officer
    $100,142
    @ $161.00 · 2026-04-08
    FRANK MEGHAN
    Chief Financial Officer
    $561,821
    @ $211.37 · 2025-12-30
    BURGOYNE CELESTE
    Officer
    $2.76M
    @ $204.00 · 2025-12-16
    NEUBURGER NICOLE
    Officer
    $109,470
    @ $178.00 · 2025-09-30
    MCDONALD CALVIN
    Chief Executive Officer
    $6.38M
    @ $235.69 · 2025-06-27
    NEUBURGER NICOLE
    Officer
    $782,735
    @ $387.11 · 2024-12-26
    BURGOYNE CELESTE
    Officer
    $10.09M
    @ $405.54 · 2024-12-09
    NEUBURGER NICOLE
    Officer
    $131,021
    @ $269.59 · 2024-09-26
    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.
    LULU
    FearGreed
    😨Fear(25/100)

    "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)
    LULU
    ⚪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 (25)
    View BRK-B Full AnalysisView LULU Full Analysis

    Frequently Asked Questions: BRK-B vs LULU

    Is Berkshire Hathaway Inc. or lululemon athletica inc. more undervalued in 2026?▼

    Based on our discounted cash flow model, LULU trades at a 52.5% margin of safety (intrinsic value $235 vs. price $112), compared to BRK-B's 24.0% margin of safety (intrinsic $644 vs. $489).

    Which stock has a wider economic moat, Berkshire Hathaway Inc. or lululemon athletica inc.?▼

    LULU scores 93/100 (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. LULU scores 5.5 (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 lululemon athletica inc.?▼

    lululemon athletica inc. (LULU) generates a 8.9% free cash flow yield, compared to Berkshire Hathaway Inc.'s 5.8%. 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 lululemon athletica inc.?▼

    LULU earns 14.2% 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.