Berkshire Hathaway Inc. (BRK-B) vs The PNC Financial Services Group, Inc. (PNC): 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%. PNC is fairly valued at $250, with an intrinsic value of $252 and a margin of safety of 1%. 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.
- ★The PNC Financial Services Group, Inc. scores 75/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $1.03 of earning power — management is creating shareholder value.
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.
- ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Altman Z-Score of 0.29 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠Free cash flow has declined at a 21.6% CAGR over the past 4 years — a concerning trend.
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.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Narrow moat with reinvestment efficiency as the key competitive advantage. Improving revenue predictability would strengthen the moat.
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
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 optimistic — be cautious and ensure you have a margin of safety"
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 PNC
Is Berkshire Hathaway Inc. or The PNC Financial Services Group, 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 PNC's 0.7% margin of safety (intrinsic $252 vs. $250).
Which stock has a wider economic moat, Berkshire Hathaway Inc. or The PNC Financial Services Group, Inc.?▼
PNC scores 75/100 (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 The PNC Financial Services Group, Inc. in financial distress?▼
PNC's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. BRK-B scores 2.5 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Berkshire Hathaway Inc. or The PNC Financial Services Group, Inc.?▼
PNC earns 8.7% 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.