Compare StocksBRK-B vs VRTX

Berkshire Hathaway Inc. (BRK-B) vs Vertex Pharmaceuticals Incorporated (VRTX)

BRK-B
Berkshire Hathaway Inc.
$481.48
VS
VRTX
Vertex Pharmaceuticals Incorporated
$458.05

Rewards

BRK-B
  • Each dollar of retained earnings has created $1.66 of market value — management is creating shareholder value.
  • Net debt/EBITDA of -2.2x means the company holds more cash than debt — a net cash position.
VRTX
  • Each dollar of retained earnings has created $5.82 of market value — management is an exceptional capital allocator.
  • PEG ratio of 0.91 suggests the stock is undervalued relative to its growth rate — paying less than 1x for each unit of earnings growth.
  • Altman Z-Score of 12.04 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

BRK-B
  • Berkshire Hathaway Inc. scores only 16/100 on the Economic Moat Score, suggesting limited durable competitive advantages.
  • Trailing P/E of 15.5x is 75% above the historical average of 8.9x — the stock trades at a premium to its own history.
VRTX
  • ROIC has declined by 5.3 percentage points over the observed period, which may signal competitive erosion.
  • FCF yield of 2.2% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
  • 30 insider sales totaling $75.0M with no purchases in the past 3 months — insiders are reducing their exposure.

Key Valuation Metrics

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BRK-B
VRTX
Valuation
$36.80B
Free Cash Flow
$2.57B
3.54%
FCF Yield
2.21%
15.50
Trailing P/E
29.94
22.11
Forward P/E
20.87
Quality & Moat
11.31%
ROIC
18.14%
9.30%
ROE
21.18%
26.15%
Gross Margin
53.66%
N/A
PEG Ratio
0.91
Balance Sheet Safety
0.19
Debt / Equity
0.11
N/A
Interest Coverage
N/A
-2.15
Net Debt / EBITDA
-0.94
N/A
Dividend Yield
N/A
BRK-B: 4Ties: 1VRTX: 5
BRK-BVRTX

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.

VRTX

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
+$417.98B
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
VRTX
$5.82
created per $1 retained over 3 years
Exceptional Value Creator
Σ Retained
$7.04B
Δ Market Cap
+$40.93B
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
31.1% Margin of Safety
Price is 31.1% below estimated fair value
Current Price: $481.48
Fair Value: $699.14
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
VRTX
10.2% Margin of Safety
Price is 10.2% below estimated fair value
Current Price: $458.05
Fair Value: $510.34
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 $481?

+0.7%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.8%

The market implies +0.7% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.8%, reflecting heavy growth investment.

VRTX

What growth rate is the market pricing in at $458?

+12.4%
Market-Implied Owner Earnings Growth
Standard FCF implies +18.3%

The market implies +12.4% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +18.3%, reflecting heavy growth investment.

Economic Moat Score

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BRK-B
16/100
No Moat
70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though reinvestment efficiency shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

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.
VRTX
65/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with revenue predictability 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.
VRTX
-2.21
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 33.5%
No. of Institutional Holders5,852
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.
VRTX
Insiders 0.2%Institutions 97.7%Retail & Other 2.1%
No. of Institutional Holders2,318
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
VRTX
0
Buys (3M)
2
Buys (12M)
Total value (12M): $5.84M
KEWALRAMANI RESHMA
Chief Executive Officer
$3.90M
@ $389.58 · 2025-08-06
SACHS BRUCE I
Director
$1.95M
@ $389.68 · 2025-08-06
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
VRTX
30
Sells (3M)
40
Sells (12M)
Total value (12M): $146.21M
BOZIC CARMEN
Officer
$1.12M
@ $481.79 · 2026-03-13
MCKECHNIE DUNCAN
Officer
$1.31M
@ $498.42 · 2026-03-11
MCKECHNIE DUNCAN
Officer
$1.16M
@ $475.30 · 2026-03-04
LIU JOY
Officer
$442,396
@ $495.96 · 2026-03-02
BOZIC CARMEN
Officer
$1.12M
@ $480.31 · 2026-02-27
KEWALRAMANI RESHMA
Chief Executive Officer
$19.74M
@ $493.47 · 2026-02-27
AMBROSE KRISTEN
Officer
$172,560
@ $483.36 · 2026-02-26
ATKINSON EDWARD MORROW III
Chief Technology Officer
$324,882
@ $486.35 · 2026-02-25
MCKECHNIE DUNCAN
Officer
$2.39M
@ $487.65 · 2026-02-25
BUNNAGE MARK E.
Officer
$301,537
@ $486.35 · 2026-02-25
AMBROSE KRISTEN
Officer
$108,456
@ $486.35 · 2026-02-25
BILLER JONATHAN PRIM
Officer
$459,601
@ $486.35 · 2026-02-25
TATSIS OURANIA
Officer
$126,451
@ $486.35 · 2026-02-25
SACHDEV AMIT
Officer
$897,802
@ $486.35 · 2026-02-25
SACHDEV AMIT
Officer
$27.48M
@ $468.83 · 2026-02-19
ATKINSON EDWARD MORROW III
Chief Technology Officer
$1.38M
@ $484.93 · 2026-02-18
BUNNAGE MARK E.
Officer
$1.75M
@ $484.31 · 2026-02-18
AMBROSE KRISTEN
Officer
$1.06M
@ $484.87 · 2026-02-18
BILLER JONATHAN PRIM
Officer
$1.80M
@ $484.18 · 2026-02-18
TATSIS OURANIA
Officer
$472,395
@ $483.52 · 2026-02-18
BILLER JONATHAN PRIM
Officer
$493,012
@ $499.00 · 2026-02-13
TATSIS OURANIA
Officer
$749,985
@ $499.99 · 2026-02-13
BHATIA SANGEETA N
Director
$133,000
@ $500.00 · 2026-02-13
ATKINSON EDWARD MORROW III
Chief Technology Officer
$806,213
@ $460.43 · 2026-02-11
BUNNAGE MARK E.
Officer
$930,529
@ $460.43 · 2026-02-11
AMBROSE KRISTEN
Officer
$633,552
@ $460.43 · 2026-02-11
BILLER JONATHAN PRIM
Officer
$886,328
@ $460.43 · 2026-02-11
TATSIS OURANIA
Officer
$214,560
@ $460.43 · 2026-02-11
TATSIS OURANIA
Officer
$2.14M
@ $474.99 · 2026-01-07
WAGNER CHARLES F JR
Chief Operating Officer
$4.39M
@ $461.00 · 2026-01-06
BILLER JONATHAN PRIM
Officer
$155,803
@ $449.00 · 2025-12-03
TATSIS OURANIA
Officer
$2.02M
@ $449.99 · 2025-12-03
WAGNER CHARLES F JR
Chief Operating Officer
$6.38M
@ $456.00 · 2025-12-03
LEIDEN JEFFREY M
Officer and Director
$28.65M
@ $449.20 · 2025-12-03
ATKINSON EDWARD MORROW III
Chief Technology Officer
$1.09M
@ $434.58 · 2025-11-17
LEIDEN JEFFREY M
Officer and Director
$32.29M
@ $440.60 · 2025-11-14
BILLER JONATHAN PRIM
Officer
$280,522
@ $404.21 · 2025-10-02
BHATIA SANGEETA N
Director
$102,860
@ $386.69 · 2025-08-27
ALTSHULER DAVID
Officer
$22,084
@ $424.69 · 2025-05-15
BHATIA SANGEETA N
Director
$202,344
@ $505.86 · 2025-05-02
ALTSHULER DAVID
Officer
$1.65M
@ $510.00 · 2025-03-13
TATSIS OURANIA
Officer
$1.62M
@ $499.99 · 2025-03-10
ALTSHULER DAVID
Officer
$1.62M
@ $500.00 · 2025-03-10
WAGNER CHARLES F JR
Chief Financial Officer
$1.65M
@ $500.00 · 2025-03-10
TATSIS OURANIA
Officer
$1.97M
@ $485.49 · 2025-03-04
ALTSHULER DAVID
Officer
$1.58M
@ $490.00 · 2025-03-03
ATKINSON EDWARD MORROW III
Chief Technology Officer
$1.26M
@ $475.34 · 2025-02-27
TATSIS OURANIA
Officer
$251,930
@ $475.34 · 2025-02-27
ALTSHULER DAVID
Officer
$610,560
@ $480.00 · 2025-02-27
ATKINSON EDWARD MORROW III
Officer
$849,839
@ $480.95 · 2025-02-25
AMBROSE KRISTEN
Officer
$425,160
@ $480.95 · 2025-02-25
TATSIS OURANIA
Officer
$170,256
@ $480.95 · 2025-02-25
ALTSHULER DAVID
Officer
$407,846
@ $480.95 · 2025-02-25
ALTSHULER DAVID
Officer
$533,280
@ $480.00 · 2025-02-20
AMBROSE KRISTEN
Officer
$305,345
@ $455.06 · 2025-02-18
BILLER JONATHAN PRIM
Officer
$754,034
@ $455.06 · 2025-02-18
TATSIS OURANIA
Officer
$111,035
@ $455.06 · 2025-02-18
AMBROSE KRISTEN
Officer
$632,726
@ $459.83 · 2025-02-11
ATKINSON EDWARD MORROW III
Chief Technology Officer
$803,323
@ $459.83 · 2025-02-11
BILLER JONATHAN PRIM
Officer
$1.58M
@ $459.87 · 2025-02-11
TATSIS OURANIA
Officer
$142,547
@ $459.83 · 2025-02-11
ALTSHULER DAVID
Officer
$7,178
@ $478.53 · 2024-11-15
WAGNER CHARLES F JR
Chief Financial Officer
$1.55M
@ $518.27 · 2024-11-11
KEWALRAMANI RESHMA
Chief Executive Officer
$7.83M
@ $515.00 · 2024-11-08
BILLER JONATHAN PRIM
Officer
$461,198
@ $461.66 · 2024-10-02
BHATIA SANGEETA N
Director
$323,000
@ $500.00 · 2024-08-30
LEIDEN JEFFREY M
Officer and Director
$1.89M
@ $499.00 · 2024-08-30
BHATIA SANGEETA N
Director
$602,447
@ $466.29 · 2024-08-08
BOZIC CARMEN
Officer
$1.09M
@ $476.75 · 2024-08-07
SACHS BRUCE I
Director
$2.69M
@ $508.00 · 2024-08-01
KEWALRAMANI RESHMA
Chief Executive Officer
$7.68M
@ $505.00 · 2024-07-30
BOZIC CARMEN
Officer
$1.11M
@ $488.46 · 2024-07-24
KEWALRAMANI RESHMA
Chief Executive Officer
$7.56M
@ $497.00 · 2024-07-22
BOZIC CARMEN
Officer
$1.11M
@ $487.34 · 2024-07-10
BOZIC CARMEN
Officer
$1.08M
@ $471.72 · 2024-06-26
BOZIC CARMEN
Officer
$1.09M
@ $478.00 · 2024-06-12
ATKINSON EDWARD MORROW III
Chief Technology Officer
$3.48M
@ $478.00 · 2024-06-12
TATSIS OURANIA
Officer
$1.00M
@ $460.00 · 2024-06-03
WAGNER CHARLES F JR
Chief Financial Officer
$1.50M
@ $460.00 · 2024-06-03
TATSIS OURANIA
Officer
$2.03M
@ $441.99 · 2024-05-31
BOZIC CARMEN
Officer
$1.02M
@ $445.56 · 2024-05-29
WAGNER CHARLES F JR
Chief Financial Officer
$1.48M
@ $454.79 · 2024-05-28
KEWALRAMANI RESHMA
Chief Executive Officer
$715,205
@ $457.00 · 2024-05-24
SACHS BRUCE I
Director
$3.17M
@ $448.00 · 2024-05-22
KEWALRAMANI RESHMA
Chief Executive Officer
$6.80M
@ $447.00 · 2024-05-20
ARBUCKLE STUART A
Chief Operating Officer
$29,734
@ $430.93 · 2024-05-15
ALTSHULER DAVID
Officer
$23,270
@ $430.93 · 2024-05-15
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(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.
VRTX
FearGreed
😐Neutral(50/100)

"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 (48)
VRTX
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 (50)
View BRK-B Full AnalysisView VRTX Full Analysis
Berkshire Hathaway Inc. (BRK-B) vs Vertex Pharmaceuticals Incorporated (VRTX) Stock Comparison | SafetyMargin.io