WallStSmart

Berkshire Hathaway Inc (BRK-B)vsCostco Wholesale Corp (COST)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Berkshire Hathaway Inc generates 31% more annual revenue ($375.39B vs $286.27B). BRK-B leads profitability with a 19.3% profit margin vs 3.0%. COST appears more attractively valued with a PEG of 5.14. BRK-B earns a higher WallStSmart Score of 62/100 (C+).

BRK-B

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.5Value: 5.0Quality: 8.0
Piotroski: 3/9Altman Z: 2.59

COST

Buy

61

out of 100

Grade: C+

Growth: 8.0Profit: 6.5Value: 2.0Quality: 7.5
Piotroski: 4/9Altman Z: 4.84
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BRK-B.

COSTSignificantly Overvalued (-89.1%)

Margin of Safety

-89.1%

Fair Value

$535.26

Current Price

$1008.79

$473.53 premium

UndervaluedFair: $535.26Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BRK-B6 strengths · Avg: 9.2/10
Market CapQuality
$1.02T10/10

Mega-cap, among the largest globally

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
119.6%10/10

Earnings expanding 119.6% YoY

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

P/E RatioValuation
14.1x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$5.45B8/10

Generating 5.5B in free cash flow

COST6 strengths · Avg: 9.0/10
Market CapQuality
$449.00B10/10

Mega-cap, among the largest globally

Altman Z-ScoreHealth
4.8410/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
29.6%9/10

Every $100 of equity generates 30 in profit

Debt/EquityHealth
0.279/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
21.5%8/10

Revenue surging 21.5% year-over-year

EPS GrowthGrowth
45.5%8/10

Earnings expanding 45.5% YoY

Areas to Watch

BRK-B3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.4%4/10

4.4% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
10.062/10

Expensive relative to growth rate

COST4 concerns · Avg: 2.5/10
Profit MarginProfitability
3.0%3/10

3.0% margin — thin

Operating MarginProfitability
3.7%3/10

Operating margin of 3.7%

PEG RatioValuation
5.142/10

Expensive relative to growth rate

P/E RatioValuation
52.6x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : BRK-B

The strongest argument for BRK-B centers on Market Cap, Price/Book, EPS Growth. Profitability is solid with margins at 19.3% and operating margin at 14.3%.

Bull Case : COST

The strongest argument for COST centers on Market Cap, Altman Z-Score, Return on Equity. Revenue growth of 21.5% demonstrates continued momentum.

Bear Case : BRK-B

The primary concerns for BRK-B are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : COST

The primary concerns for COST are Profit Margin, Operating Margin, PEG Ratio. A P/E of 52.6x leaves little room for execution misses. Thin 3.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

BRK-B profiles as a value stock while COST is a growth play — different risk/reward profiles.

COST carries more volatility with a beta of 0.91 — expect wider price swings.

COST is growing revenue faster at 21.5% — sustainability is the question.

BRK-B generates stronger free cash flow (5.5B), providing more financial flexibility.

Bottom Line

BRK-B scores higher overall (62/100 vs 61/100), backed by strong 19.3% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Berkshire Hathaway Inc

FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA

Berkshire Hathaway Inc. is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company wholly owns GEICO, Duracell, Dairy Queen, BNSF, Lubrizol, Fruit of the Loom, Helzberg Diamonds, Long & Foster, FlightSafety International, Pampered Chef, Forest River, and NetJets, and also owns 38.6% of Pilot Flying J; and significant minority holdings in public companies Kraft Heinz Company (26.7%), American Express (18.8%), The Coca-Cola Company (9.32%), Bank of America (11.9%), and Apple (6.3%).

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Costco Wholesale Corp

CONSUMER DEFENSIVE · DISCOUNT STORES · USA

Costco Wholesale Corporation (doing business as Costco Wholesale and also known simply as Costco) is an American multinational corporation which operates a chain of membership-only (needing a membership to shop there) big-box retail stores. As of 2020, Costco was the fifth largest retailer in the world, and the world's largest retailer of choice and prime beef, organic foods, rotisserie chicken, and wine as of 2016.

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