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Compare Stocks › BRK-B vs SCHW

Berkshire Hathaway Inc. (BRK-B) vs The Charles Schwab Corporation (SCHW)

BRK-B
Berkshire Hathaway Inc.
$473.01
VS
SCHW
The Charles Schwab Corporation
$91.54

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.
SCHW
  • ★Gross margin of 97.5% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
  • ★Free cash flow has grown at a 100.6% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Each dollar of retained earnings has created $1.43 of earning power — management is creating shareholder value.

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.
SCHW
  • ⚠Altman Z-Score of 0.41 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
  • ⚠Insiders have sold $8.4M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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BRK-B
SCHW
Valuation
$61.23B
Free Cash Flow
N/A
6.00%
FCF Yield
N/A
15.24
Trailing P/E
18.20
21.95
Forward P/E
13.10
Quality & Moat
4.96%
ROIC
11.72%
9.18%
ROE
17.11%
27.78%
Gross Margin
97.46%
0.13
PEG Ratio
0.47
Balance Sheet Safety
0.18
Debt / Equity
0.67
N/A
Interest Coverage
N/A
-2.28
Net Debt / EBITDA
N/A
N/A
Dividend Yield
1.40%
BRK-B: 3Ties: 1SCHW: 4
BRK-BSCHW

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.

SCHW

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
SCHW
$1.65
created per $1 retained over 3 years
Value Creator
Σ Retained
$12.98B
Δ Market Cap
+$21.38B
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
SCHW
55.3% Margin of Safety
Price is 55.3% below estimated fair value
Current Price: $91.54
Fair Value: $204.98
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.

SCHW

Requires positive FCF to compute implied growth rate.

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.
SCHW
67/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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.

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.
SCHW
-2.16
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 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.
SCHW
Insiders 6.2%Institutions 85.6%Retail & Other 8.2%
No. of Institutional Holders2,914
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
SCHW
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
SCHW
4
Sells (3M)
15
Sells (12M)
Total value (12M): $44.33M
MURTAGH NIGEL J.
Officer
$4.09M
@ $99.00 · 2026-04-14
HOWARD DENNIS
Chief Technology Officer
$956,228
@ $94.60 · 2026-03-03
MURTAGH NIGEL J.
Officer
$681,454
@ $94.61 · 2026-03-03
HOWARD DENNIS
Officer
$2.65M
@ $95.02 · 2026-02-25
MORGAN PETER J. III
General Counsel
$792,796
@ $104.38 · 2026-02-02
MORGAN PETER J. III
General Counsel
$4.85M
@ $97.00 · 2025-08-27
WURSTER RICHARD A.
Chief Executive Officer
$2.03M
@ $99.16 · 2025-07-29
MURTAGH NIGEL J.
Officer
$2.36M
@ $97.91 · 2025-07-29
MURTAGH NIGEL J.
Officer
$1.88M
@ $90.01 · 2025-06-18
MURTAGH NIGEL J.
Officer
$2.21M
@ $88.20 · 2025-05-28
MORGAN PETER J. III
General Counsel
$889,295
@ $87.39 · 2025-05-22
RUFFEL CHARLES ANTHONY
Director
$486,986
@ $87.65 · 2025-05-21
BETTINGER WALTER W II
Chairman of the Board
$17.05M
@ $89.00 · 2025-05-19
WURSTER RICHARD A.
Chief Executive Officer
$1.29M
@ $84.08 · 2025-05-09
MURTAGH NIGEL J.
Officer
$2.13M
@ $85.00 · 2025-05-08
MURTAGH NIGEL J.
Officer
$1.15M
@ $75.38 · 2025-03-05
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.
SCHW
FearGreed
😐Neutral(48/100)

"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.

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)
SCHW
⚪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 (48)
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BRK-B vs SCHW: Which Is the Better Buy? | SafetyMargin.io