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Compare Stocks › BRK-B vs PAYC

Berkshire Hathaway Inc. (BRK-B) vs Paycom Software, Inc. (PAYC)

BRK-B
Berkshire Hathaway Inc.
$473.01
VS
PAYC
Paycom Software, Inc.
$131.96

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.
PAYC
  • ★Paycom Software, Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
  • ★Gross margin of 87.2% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Paycom Software, Inc. scores 87/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

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.
PAYC
  • ⚠FCF yield of 5.6% suggests reasonable valuation assuming continued moderate growth.
  • ⚠PEG ratio of 7.78 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.

Key Valuation Metrics

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BRK-B
PAYC
Valuation
$61.23B
Free Cash Flow
$403.50M
6.00%
FCF Yield
5.63%
15.24
Trailing P/E
16.33
21.95
Forward P/E
11.34
Quality & Moat
4.96%
ROIC
25.68%
9.18%
ROE
26.18%
27.78%
Gross Margin
87.18%
0.13
PEG Ratio
7.78
Balance Sheet Safety
0.18
Debt / Equity
0.05
N/A
Interest Coverage
N/A
-2.28
Net Debt / EBITDA
-0.44
N/A
Dividend Yield
1.14%
BRK-B: 5Ties: 1PAYC: 5
BRK-BPAYC

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.

PAYC

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
PAYC
$-8.69
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$1.06B
Δ Market Cap
$-9.22B
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
31.0% 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
PAYC
41.5% Margin of Safety
Price is 41.5% below estimated fair value
Current Price: $131.96
Fair Value: $225.47
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 $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.

PAYC

What growth rate is the market pricing in at $132?

+4.0%
Market-Implied Owner Earnings Growth
Standard FCF implies +5.5%

The market implies +4.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +5.5%, 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 5 years of fundamental data.
PAYC
87/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. ROIC Consistency 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.
PAYC
-2.54
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.
PAYC
Insiders 13.5%Institutions 107.6%
No. of Institutional Holders969
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
PAYC
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
PAYC
0
Sells (3M)
3
Sells (12M)
Total value (12M): $809,260
FOSTER ROBERT D
Chief Financial Officer
$211,458
@ $162.66 · 2025-12-10
PECK RANDALL
Chief Operating Officer
$363,541
@ $165.85 · 2025-12-05
PECK RANDALL
Chief Operating Officer
$234,261
@ $263.21 · 2025-06-04
WATTS JULIUS C JR.
Director
$109,108
@ $218.22 · 2025-02-24
PECK RANDALL
Chief Operating Officer
$763,866
@ $212.19 · 2025-02-21
PETERS FREDERICK C II
Director
$315,855
@ $210.57 · 2025-02-18
RICHISON CHAD R
Chief Executive Officer
$414,154
@ $212.39 · 2024-10-31
BOELTE CRAIG E
Chief Financial Officer
$1.85M
@ $155.98 · 2024-08-12
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(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.
PAYC
FearGreed
😨Fear(36/100)

"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 (52)
PAYC
⚪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 (36)
View BRK-B Full AnalysisView PAYC Full Analysis
BRK-B vs PAYC: Which Is the Better Buy? | SafetyMargin.io