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AFG vs BRK-B

AFG
American Financial Group, Inc.
NEUTRAL
Price
$127.79
Market Cap
$10.66B
Sector
Financial Services
AI Confidence
65%
BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
AFG
13.48
BRK-B
15.46
Forward P/E
AFG
11.26
BRK-B
22.06
P/B Ratio
AFG
2.25
BRK-B
0.0
P/S Ratio
AFG
1.33
BRK-B
2.79
EV/EBITDA
AFG
8.99
BRK-B
-2.12

Profitability

Gross Margin
AFG
17.85%
BRK-B
26.15%
Operating Margin
AFG
12.72%
BRK-B
32.96%
Profit Margin
AFG
9.96%
BRK-B
18.03%
ROE
AFG
16.91%
BRK-B
9.81%
ROA
AFG
2.1%
BRK-B
5.11%

Growth

Revenue Growth
AFG
-0.8%
BRK-B
-0.7%
Earnings Growth
AFG
19.5%
BRK-B
-2.5%

Financial Health

Debt/Equity
AFG
0.43
BRK-B
0.19
Current Ratio
AFG
2.16
BRK-B
7.07
Quick Ratio
AFG
1.0
BRK-B
6.62

Dividends

Dividend Yield
AFG
2.74%
BRK-B
--
Payout Ratio
AFG
33.58%
BRK-B
0.0%

AI Verdict

AFG NEUTRAL

AFG's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a full distress risk assessment. The stock trades below its growth-based intrinsic value of $279.66 but above the conservative Graham Number of $109.99, suggesting moderate undervaluation with structural risks. Profitability metrics like ROE (16.91%) and low Debt/Equity (0.43) are strong, but weak revenue growth (-0.80% YoY) and bearish insider activity weigh on momentum. Analysts recommend a 'buy' with a target price of $143.83, implying 12.5% upside, though recent price performance has been flat to negative in the short term.

Strengths
Strong return on equity (ROE) of 16.91%, above sector average and indicating efficient capital use
Low debt-to-equity ratio of 0.43, well below sector average of 1.70, signaling conservative leverage
Attractive dividend yield of 2.74% with a sustainable payout ratio of 33.58%
Risks
Piotroski F-Score of 4/9 indicates only stable financial health, with room for deterioration
Revenue declining YoY (-0.80%), raising concerns about top-line sustainability despite earnings growth
Missing Altman Z-Score prevents clear assessment of bankruptcy risk; absence is a red flag
BRK-B NEUTRAL

The deterministic health profile is weak, highlighted by a Piotroski F-Score of 3/9, indicating deteriorating operational efficiency and profitability trends. While the company maintains a fortress balance sheet with a Debt/Equity ratio of 0.19 and a Current Ratio of 7.07, the stock is trading at a significant premium to its growth-based intrinsic value of $217.21. Negative YoY revenue and earnings growth, coupled with a bearish technical trend, offset the positive analyst sentiment and long-term historical performance.

Strengths
Exceptional liquidity with a Current Ratio of 7.07
Very low leverage (Debt/Equity 0.19)
Strong operating margins at 32.96%
Risks
Significant overvaluation relative to intrinsic value ($479.75 vs $217.21)
Negative YoY earnings growth (-2.50%) and revenue growth (-0.70%)
Weak Piotroski F-Score (3/9) suggesting declining financial health trends

Compare Another Pair

AFG vs BRK-B: Head-to-Head Comparison

This page compares American Financial Group, Inc. (AFG) and Berkshire Hathaway Inc. (BRK-B) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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