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AGO vs BRK-B

AGO
Assured Guaranty Ltd.
NEUTRAL
Price
$83.26
Market Cap
$3.96B
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
AGO
10.36
BRK-B
15.46
Forward P/E
AGO
11.42
BRK-B
22.06
P/B Ratio
AGO
0.69
BRK-B
0.0
P/S Ratio
AGO
4.35
BRK-B
2.79
EV/EBITDA
AGO
--
BRK-B
-2.12

Profitability

Gross Margin
AGO
90.34%
BRK-B
26.15%
Operating Margin
AGO
67.14%
BRK-B
32.96%
Profit Margin
AGO
44.13%
BRK-B
18.03%
ROE
AGO
7.41%
BRK-B
9.81%
ROA
AGO
2.33%
BRK-B
5.11%

Growth

Revenue Growth
AGO
10.4%
BRK-B
-0.7%
Earnings Growth
AGO
-31.2%
BRK-B
-2.5%

Financial Health

Debt/Equity
AGO
0.3
BRK-B
0.19
Current Ratio
AGO
1.02
BRK-B
7.07
Quick Ratio
AGO
0.99
BRK-B
6.62

Dividends

Dividend Yield
AGO
1.61%
BRK-B
--
Payout Ratio
AGO
16.3%
BRK-B
0.0%

AI Verdict

AGO NEUTRAL

The Advanced Deterministic Scorecard reveals a weak Piotroski F-Score of 3/9, indicating poor financial health, while the absence of an Altman Z-Score prevents a definitive distress risk assessment. Despite this, AGO trades below the Graham Number of $148.07 at $83.26, suggesting potential undervaluation, supported by a low P/E of 10.36 versus sector average of 22.56. However, declining earnings growth (YoY: -31.20%) and negative insider sentiment counterbalance value appeal. Analysts recommend a 'buy' with a $107.00 target, implying upside, but inconsistent quarterly execution and bearish technical trend temper near-term optimism.

Strengths
Significantly undervalued relative to Graham Number ($148.07 vs. current price $83.26)
Low valuation multiples: P/E of 10.36 well below sector average of 22.56
Exceptionally high profitability margins: Gross (90.34%), Operating (67.14%), and Net (44.13%)
Risks
Very weak Piotroski F-Score of 3/9 signals deteriorating financial health and operational instability
Earnings under pressure: YoY earnings growth down 31.20% and Q/Q down 38.60%
Absence of Altman Z-Score limits ability to assess bankruptcy risk; requires caution
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

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

This page compares Assured Guaranty Ltd. (AGO) 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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