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BBDC vs BRK-B

BBDC
Barings BDC, Inc.
BEARISH
Price
$9.15
Market Cap
$962.2M
Sector
Financial Services
AI Confidence
78%
BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BBDC
9.63
BRK-B
15.46
Forward P/E
BBDC
9.38
BRK-B
22.06
P/B Ratio
BBDC
0.82
BRK-B
0.0
P/S Ratio
BBDC
3.41
BRK-B
2.79
EV/EBITDA
BBDC
--
BRK-B
-2.12

Profitability

Gross Margin
BBDC
100.0%
BRK-B
26.15%
Operating Margin
BBDC
77.98%
BRK-B
32.96%
Profit Margin
BBDC
36.02%
BRK-B
18.03%
ROE
BBDC
8.6%
BRK-B
9.81%
ROA
BBDC
4.81%
BRK-B
5.11%

Growth

Revenue Growth
BBDC
2.2%
BRK-B
-0.7%
Earnings Growth
BBDC
7.5%
BRK-B
-2.5%

Financial Health

Debt/Equity
BBDC
1.39
BRK-B
0.19
Current Ratio
BBDC
1.57
BRK-B
7.07
Quick Ratio
BBDC
1.16
BRK-B
6.62

Dividends

Dividend Yield
BBDC
11.27%
BRK-B
--
Payout Ratio
BBDC
108.33%
BRK-B
0.0%

AI Verdict

BBDC BEARISH

The Advanced Deterministic Scorecard reveals significant concerns, with a Piotroski F-Score of just 2/9 indicating weak financial health. Despite a high dividend yield of 11.27%, the unsustainable 108.33% payout ratio and bearish insider activity raise red flags. While profitability metrics like operating margin and ROE are strong relative to peers, elevated debt (D/E of 1.39) and deteriorating earnings momentum in recent quarters undermine confidence. The stock trades below intrinsic value estimates ($17.34) and slightly above the Graham Number ($15.40), but structural risks outweigh valuation appeal.

Strengths
High operating margin (77.98%) suggests strong cost control and pricing power
Attractive dividend yield of 11.27% offers income appeal in a low-growth environment
Price/Book of 0.82 indicates the stock trades below book value, signaling potential undervaluation
Risks
Piotroski F-Score of 2/9 signals severe financial distress and poor fundamental health
Dividend payout ratio of 108.33% is unsustainable and likely to lead to a cut or suspension
Debt/Equity ratio of 1.39 is high, increasing vulnerability to rising interest rates or credit tightening
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

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

This page compares Barings BDC, Inc. (BBDC) 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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