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BRK-B vs PSEC

BRK-B
Berkshire Hathaway Inc.
NEUTRAL
Price
$479.75
Market Cap
$1.03T
Sector
Financial Services
AI Confidence
85%
PSEC
Prospect Capital Corporation
BEARISH
Price
$2.81
Market Cap
$1.37B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BRK-B
15.46
PSEC
--
Forward P/E
BRK-B
22.06
PSEC
6.69
P/B Ratio
BRK-B
0.0
PSEC
0.45
P/S Ratio
BRK-B
2.79
PSEC
2.04
EV/EBITDA
BRK-B
-2.12
PSEC
--

Profitability

Gross Margin
BRK-B
26.15%
PSEC
100.0%
Operating Margin
BRK-B
32.96%
PSEC
70.27%
Profit Margin
BRK-B
18.03%
PSEC
-34.88%
ROE
BRK-B
9.81%
PSEC
-4.85%
ROA
BRK-B
5.11%
PSEC
4.26%

Growth

Revenue Growth
BRK-B
-0.7%
PSEC
-5.1%
Earnings Growth
BRK-B
-2.5%
PSEC
--

Financial Health

Debt/Equity
BRK-B
0.19
PSEC
0.4
Current Ratio
BRK-B
7.07
PSEC
0.74
Quick Ratio
BRK-B
6.62
PSEC
0.7

Dividends

Dividend Yield
BRK-B
--
PSEC
19.22%
Payout Ratio
BRK-B
0.0%
PSEC
211.76%

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
PSEC BEARISH

PSEC exhibits significant financial distress as evidenced by a weak Piotroski F-Score of 2/9 and a bearish technical trend. While the stock trades at a deep discount to book value (P/B 0.45), this is offset by an unsustainable dividend payout ratio of 211.76% and negative profit margins. The combination of negative ROE and a current ratio below 1.0 suggests liquidity risks and poor capital efficiency. Despite short-term price momentum, the long-term trajectory and fundamental health indicators point to a 'yield trap' scenario.

Strengths
Deeply undervalued relative to book value (P/B 0.45)
Extremely high current dividend yield (19.22%)
Positive short-term price momentum (1-month and 1-week gains)
Risks
Unsustainable dividend payout ratio (211.76%) indicating capital erosion
Very weak financial health (Piotroski F-Score 2/9)
Negative profit margins (-34.88%) and negative ROE (-4.85%)

Compare Another Pair

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

This page compares Berkshire Hathaway Inc. (BRK-B) and Prospect Capital Corporation (PSEC) 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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