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BRK-B vs FTF

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
FTF
Franklin Limited Duration Income Trust
BEARISH
Price
$5.88
Market Cap
$237.6M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BRK-B
15.46
FTF
14.0
Forward P/E
BRK-B
22.06
FTF
--
P/B Ratio
BRK-B
0.0
FTF
0.89
P/S Ratio
BRK-B
2.79
FTF
7.22
EV/EBITDA
BRK-B
-2.12
FTF
--

Profitability

Gross Margin
BRK-B
26.15%
FTF
100.0%
Operating Margin
BRK-B
32.96%
FTF
85.91%
Profit Margin
BRK-B
18.03%
FTF
51.89%
ROE
BRK-B
9.81%
FTF
6.23%
ROA
BRK-B
5.11%
FTF
4.37%

Growth

Revenue Growth
BRK-B
-0.7%
FTF
-8.9%
Earnings Growth
BRK-B
-2.5%
FTF
-26.4%

Financial Health

Debt/Equity
BRK-B
0.19
FTF
0.36
Current Ratio
BRK-B
7.07
FTF
0.42
Quick Ratio
BRK-B
6.62
FTF
0.42

Dividends

Dividend Yield
BRK-B
--
FTF
12.55%
Payout Ratio
BRK-B
0.0%
FTF
175.71%

AI Verdict

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
FTF BEARISH

FTF presents as a classic value trap, characterized by a stable Piotroski F-Score of 6/9 but severely compromised by unsustainable dividend payouts. While the current price of $5.88 sits below the Graham Number ($7.91) and Book Value (P/B 0.89), the growth-based intrinsic value is significantly lower at $2.94. The most critical concern is a payout ratio of 175.71%, indicating the trust is returning capital far in excess of its earnings. Combined with negative revenue and earnings growth, the high yield is likely unsustainable.

Strengths
Trading below book value (P/B 0.89)
Strong operating margins (85.91%)
Low debt-to-equity ratio (0.36)
Risks
Unsustainable dividend payout ratio (175.71%)
Significant earnings contraction (-26.40% YoY)
Poor short-term liquidity (Current Ratio 0.42)

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and Franklin Limited Duration Income Trust (FTF) 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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