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BRK-B vs MSCI

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
MSCI
MSCI Inc.
BULLISH
Price
$565.15
Market Cap
$43.08B
Sector
Financial Services
AI Confidence
88%

Valuation

P/E Ratio
BRK-B
15.46
MSCI
35.84
Forward P/E
BRK-B
22.06
MSCI
33.17
P/B Ratio
BRK-B
0.0
MSCI
-22.18
P/S Ratio
BRK-B
2.79
MSCI
14.1
EV/EBITDA
BRK-B
-2.12
MSCI
26.95

Profitability

Gross Margin
BRK-B
26.15%
MSCI
82.37%
Operating Margin
BRK-B
32.96%
MSCI
56.43%
Profit Margin
BRK-B
18.03%
MSCI
40.03%
ROE
BRK-B
9.81%
MSCI
--
ROA
BRK-B
5.11%
MSCI
19.14%

Growth

Revenue Growth
BRK-B
-0.7%
MSCI
9.5%
Earnings Growth
BRK-B
-2.5%
MSCI
19.0%

Financial Health

Debt/Equity
BRK-B
0.19
MSCI
--
Current Ratio
BRK-B
7.07
MSCI
0.88
Quick Ratio
BRK-B
6.62
MSCI
0.77

Dividends

Dividend Yield
BRK-B
--
MSCI
1.27%
Payout Ratio
BRK-B
0.0%
MSCI
44.39%

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
MSCI BULLISH

MSCI presents a compelling growth-at-a-quality story, trading at a premium valuation justified by best-in-class profitability and consistent earnings outperformance. Despite near-term price weakness (-5.3% over 1Y), the stock has delivered strong 5Y returns (+49.6%) on the back of durable double-digit earnings growth (19% YoY) and industry-leading margins. The company significantly outperforms its financial services peers in profitability and growth, with an operating margin of 56.43% and revenue growth of 9.5%, versus sector averages of 24.91% and 21.31% respectively. Analysts are aligned with a 'buy' consensus and a $655.06 target price, implying 15.9% upside, while insider selling remains a minor counterpoint.

Strengths
Operating margin of 56.43% is among the highest in the Financial Services sector, reflecting pricing power and scalable data infrastructure
Gross margin of 82.37% demonstrates exceptional operating leverage and low marginal cost of delivery
Consistent earnings outperformance: 22 out of 25 quarters beat estimates, with an average surprise of +4.7% over the last two years
Risks
Valuation is stretched: P/E of 35.84 and Price/Sales of 14.10 are well above sector averages of 22.68 and ~5.0, leaving limited margin of safety
Negative Price/Book ratio (-22.18) suggests accumulated losses or aggressive share buybacks have eroded book value, raising capital structure concerns
Current and quick ratios below 1.0 (0.88 and 0.77) indicate potential near-term liquidity pressure, unusual for a capital-light data business

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and MSCI Inc. (MSCI) 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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