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BRK-B vs MCY

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
MCY
Mercury General Corporation
BULLISH
Price
$95.65
Market Cap
$5.3B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BRK-B
15.46
MCY
9.79
Forward P/E
BRK-B
22.06
MCY
11.96
P/B Ratio
BRK-B
0.0
MCY
2.19
P/S Ratio
BRK-B
2.79
MCY
0.88
EV/EBITDA
BRK-B
-2.12
MCY
5.54

Profitability

Gross Margin
BRK-B
26.15%
MCY
18.63%
Operating Margin
BRK-B
32.96%
MCY
16.66%
Profit Margin
BRK-B
18.03%
MCY
9.03%
ROE
BRK-B
9.81%
MCY
24.8%
ROA
BRK-B
5.11%
MCY
4.82%

Growth

Revenue Growth
BRK-B
-0.7%
MCY
14.1%
Earnings Growth
BRK-B
-2.5%
MCY
100.9%

Financial Health

Debt/Equity
BRK-B
0.19
MCY
0.24
Current Ratio
BRK-B
7.07
MCY
0.56
Quick Ratio
BRK-B
6.62
MCY
0.52

Dividends

Dividend Yield
BRK-B
--
MCY
1.33%
Payout Ratio
BRK-B
0.0%
MCY
13.0%

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
MCY BULLISH

MCY exhibits a strong recovery profile, transitioning from significant losses in 2022-2023 to explosive earnings growth (100.9% YoY). While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, the company's valuation is highly attractive, trading almost exactly at its Graham Number ($97.95) and significantly below its growth-based intrinsic value ($288.21). Strong ROE (24.8%) and a low P/E ratio (9.79) suggest the market has not yet fully priced in the recent earnings acceleration.

Strengths
Explosive earnings growth (100.9% YoY) and consistent earnings beats
Attractive valuation with a P/E of 9.79 and P/S of 0.88
Strong Return on Equity (ROE) of 24.80%
Risks
Low current ratio (0.56) indicating potential short-term liquidity pressure
Low dividend strength (25/100) and yield (1.33%)
High volatility in historical quarterly earnings (swinging from losses to massive gains)

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and Mercury General Corporation (MCY) 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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