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BRK-B vs HPF

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
HPF
John Hancock Preferred Income Fund II
NEUTRAL
Price
$15.87
Market Cap
$343.6M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BRK-B
15.46
HPF
12.21
Forward P/E
BRK-B
22.06
HPF
--
P/B Ratio
BRK-B
0.0
HPF
0.99
P/S Ratio
BRK-B
2.79
HPF
8.93
EV/EBITDA
BRK-B
-2.12
HPF
--

Profitability

Gross Margin
BRK-B
26.15%
HPF
100.0%
Operating Margin
BRK-B
32.96%
HPF
88.4%
Profit Margin
BRK-B
18.03%
HPF
72.89%
ROE
BRK-B
9.81%
HPF
8.09%
ROA
BRK-B
5.11%
HPF
3.82%

Growth

Revenue Growth
BRK-B
-0.7%
HPF
1.3%
Earnings Growth
BRK-B
-2.5%
HPF
-7.3%

Financial Health

Debt/Equity
BRK-B
0.19
HPF
0.6
Current Ratio
BRK-B
7.07
HPF
2.26
Quick Ratio
BRK-B
6.62
HPF
1.48

Dividends

Dividend Yield
BRK-B
--
HPF
9.34%
Payout Ratio
BRK-B
0.0%
HPF
114.0%

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
HPF NEUTRAL

HPF presents a complex profile with a stable Piotroski F-Score of 6/9 and a Graham Number of $21.6 suggesting defensive value, yet it is countered by a low intrinsic value of $9.1. While the fund maintains strong margins and a healthy current ratio, it is exhibiting clear signs of a 'yield trap' with a payout ratio of 114% and declining earnings growth (-7.30% YoY). The stock is currently trading near its book value (P/B 0.99), providing a floor, but the bearish technical trend and unsustainable dividend profile limit upside potential.

Strengths
Strong profit margins (72.89%) and operating margins (88.40%)
Trading at a discount to the Graham Number ($21.6)
Healthy liquidity with a current ratio of 2.26
Risks
Unsustainable dividend payout ratio of 114%
Negative earnings growth (-7.30% YoY and -7.10% Q/Q)
Bearish technical trend (0/100 score)

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and John Hancock Preferred Income Fund II (HPF) 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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