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BRK-B vs NMFC

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
NMFC
New Mountain Finance Corporation
BEARISH
Price
$8.22
Market Cap
$828.6M
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BRK-B
15.46
NMFC
51.38
Forward P/E
BRK-B
22.06
NMFC
7.72
P/B Ratio
BRK-B
0.0
NMFC
0.71
P/S Ratio
BRK-B
2.79
NMFC
2.53
EV/EBITDA
BRK-B
-2.12
NMFC
--

Profitability

Gross Margin
BRK-B
26.15%
NMFC
100.0%
Operating Margin
BRK-B
32.96%
NMFC
80.85%
Profit Margin
BRK-B
18.03%
NMFC
5.04%
ROE
BRK-B
9.81%
NMFC
1.33%
ROA
BRK-B
5.11%
NMFC
5.29%

Growth

Revenue Growth
BRK-B
-0.7%
NMFC
-15.1%
Earnings Growth
BRK-B
-2.5%
NMFC
--

Financial Health

Debt/Equity
BRK-B
0.19
NMFC
1.41
Current Ratio
BRK-B
7.07
NMFC
0.56
Quick Ratio
BRK-B
6.62
NMFC
0.48

Dividends

Dividend Yield
BRK-B
--
NMFC
15.57%
Payout Ratio
BRK-B
0.0%
NMFC
800.0%

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
NMFC BEARISH

NMFC exhibits significant financial instability characterized by a mediocre Piotroski F-Score of 4/9 and a technical trend of 0/100. While the stock trades at a discount to book value (P/B 0.71), it is priced well above its Graham Number ($6.44) and intrinsic value ($1.12). The most alarming metric is the 800% dividend payout ratio, which suggests the current 15.57% yield is unsustainable based on GAAP earnings. Negative revenue growth and a consistent track record of earnings misses further degrade the outlook.

Strengths
Trading at a discount to book value (P/B 0.71)
High current dividend yield of 15.57%
Forward P/E (7.72) is significantly lower than trailing P/E
Risks
Unsustainable dividend payout ratio of 800%
Severe revenue contraction (-15.10% YoY, -194.10% Q/Q)
Poor liquidity with a current ratio of 0.56

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and New Mountain Finance Corporation (NMFC) 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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