Berkshire Hathaway Inc. (BRK-B) vs Palantir Technologies Inc. (PLTR): Which Is the Better Buy in 2026?
As of 2026-08-03, BRK-B is fairly valued at $512, with a DCF intrinsic value of $637 and a margin of safety of 20%. PLTR is overvalued at $123, with an intrinsic value of $55 and a margin of safety of -125%. Of the two, BRK-B has the wider margin of safety.
Rewards
- ★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.
- ★Gross margin of 84.1% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
- ★Free cash flow has grown at a 125.3% CAGR over the past 4 years, demonstrating strong earnings power growth.
- ★Each dollar of retained earnings has created $9.67 of earning power — management is an exceptional capital allocator.
Risks
- ⚠FCF yield of 5.5% suggests reasonable valuation assuming continued moderate growth.
- ⚠Trailing P/E of 15.2x is 30% above the historical average of 11.7x — the stock trades at a premium to its own history.
- ⚠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.
- ⚠Share count has increased by 14% over the past 4 years, diluting existing shareholders.
- ⚠Despite buyback spending, shares outstanding increased in 2 out of 2 years — stock-based compensation is offsetting repurchases.
- ⚠FCF yield of 0.6% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →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.
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
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $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
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $512?
The market implies +1.3% Owner Earnings growth, above historical trends.
Standard FCF implies a demanding +2.5%, reflecting heavy growth investment.
What growth rate is the market pricing in at $123?
The market implies +38.2% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +37.1%, reflecting heavy growth investment expected to generate future returns.
Economic Moat Score
Learn more →Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.
No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.
Forensic Accounting
Learn more →M-Score Trend
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.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is optimistic — be cautious and ensure you have a margin of safety"
"Market is pessimistic — investigate whether fears are temporary or structural"
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
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: BRK-B vs PLTR
Is Berkshire Hathaway Inc. or Palantir Technologies Inc. more undervalued in 2026?▼
Based on our discounted cash flow model, BRK-B trades at a 19.6% margin of safety (intrinsic value $637 vs. price $512), compared to PLTR's -124.8% margin of safety (intrinsic $55 vs. $123).
Which stock has a wider economic moat, Berkshire Hathaway Inc. or Palantir Technologies Inc.?▼
BRK-B scores 40/100 (Narrow moat), while PLTR scores 38/100 (None 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. PLTR scores 182.0 (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 Palantir Technologies Inc.?▼
Berkshire Hathaway Inc. (BRK-B) generates a 5.5% free cash flow yield, compared to Palantir Technologies Inc.'s 0.6%. 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 Palantir Technologies Inc.?▼
PLTR earns 21.7% 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.