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BRK-B vs GAM

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
GAM
General American Investors Company, Inc.
BULLISH
Price
$65.10
Market Cap
$1.56B
Sector
Financial Services
AI Confidence
75%

Valuation

P/E Ratio
BRK-B
15.46
GAM
4.47
Forward P/E
BRK-B
22.06
GAM
--
P/B Ratio
BRK-B
0.0
GAM
1.0
P/S Ratio
BRK-B
2.79
GAM
64.24
EV/EBITDA
BRK-B
-2.12
GAM
203.08

Profitability

Gross Margin
BRK-B
26.15%
GAM
100.0%
Operating Margin
BRK-B
32.96%
GAM
22.05%
Profit Margin
BRK-B
18.03%
GAM
1398.14%
ROE
BRK-B
9.81%
GAM
20.58%
ROA
BRK-B
5.11%
GAM
0.32%

Growth

Revenue Growth
BRK-B
-0.7%
GAM
-22.1%
Earnings Growth
BRK-B
-2.5%
GAM
292.3%

Financial Health

Debt/Equity
BRK-B
0.19
GAM
0.0
Current Ratio
BRK-B
7.07
GAM
0.86
Quick Ratio
BRK-B
6.62
GAM
0.49

Dividends

Dividend Yield
BRK-B
--
GAM
0.79%
Payout Ratio
BRK-B
0.0%
GAM
0.0%

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
GAM BULLISH

GAM presents a classic deep-value opportunity, characterized by a stable Piotroski F-Score of 5/9 and a significant discount to its Graham Number ($146.15) and Intrinsic Value ($429.52). While the technical trend is currently bearish (10/100) and revenue growth is negative, the company maintains a fortress balance sheet with zero debt and a strong ROE of 20.58%. The extreme P/E compression (4.47) relative to the sector average (38.56) suggests the market is severely underpricing the company's earnings power. The bullish outlook is driven by fundamental undervaluation and strong historical price performance, despite short-term technical headwinds.

Strengths
Extreme valuation discount with P/E of 4.47 vs sector average of 38.56
Pristine balance sheet with 0.00 Debt/Equity ratio
Strong profitability with ROE at 20.58%
Risks
Negative year-over-year revenue growth (-22.10%)
Very weak technical trend (10/100) indicating short-term bearish momentum
Low dividend yield (0.79%) providing little income support

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and General American Investors Company, Inc. (GAM) 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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