WallStSmart

American Express Company (AXP)vsBerkshire Hathaway Inc (BRK-B)

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Smart Verdict

WallStSmart Research — data-driven comparison

Berkshire Hathaway Inc generates 455% more annual revenue ($371.44B vs $66.97B). BRK-B leads profitability with a 18.0% profit margin vs 16.2%. AXP appears more attractively valued with a PEG of 1.52. AXP earns a higher WallStSmart Score of 66/100 (B-).

AXP

Strong Buy

66

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 10.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.13

BRK-B

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 7.5Value: 4.7Quality: 8.5
Piotroski: 4/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AXPUndervalued (+41.4%)

Margin of Safety

+41.4%

Fair Value

$512.74

Current Price

$300.24

$212.50 discount

UndervaluedFair: $512.74Overvalued
BRK-BSignificantly Overvalued (-134.4%)

Margin of Safety

-134.4%

Fair Value

$210.94

Current Price

$479.33

$268.39 premium

UndervaluedFair: $210.94Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AXP3 strengths · Avg: 9.3/10
Market CapQuality
$208.03B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.0%10/10

Every $100 of equity generates 34 in profit

Free Cash FlowQuality
$2.35B8/10

Generating 2.3B in free cash flow

BRK-B6 strengths · Avg: 9.2/10
Market CapQuality
$1.04T10/10

Mega-cap, among the largest globally

Price/BookValuation
0.0x10/10

Reasonable price relative to book value

Operating MarginProfitability
33.0%10/10

Strong operational efficiency at 33.0%

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

Free Cash FlowQuality
$4.99B8/10

Generating 5.0B in free cash flow

Areas to Watch

AXP3 concerns · Avg: 3.0/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Debt/EquityHealth
1.733/10

Elevated debt levels

Altman Z-ScoreHealth
0.132/10

Distress zone — elevated risk

BRK-B3 concerns · Avg: 2.0/10
PEG RatioValuation
10.062/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.7%2/10

Revenue declined 0.7%

EPS GrowthGrowth
-2.5%2/10

Earnings declined 2.5%

Comparative Analysis Report

WallStSmart Research

Bull Case : AXP

The strongest argument for AXP centers on Market Cap, Return on Equity, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 17.5%. Revenue growth of 10.6% demonstrates continued momentum.

Bull Case : BRK-B

The strongest argument for BRK-B centers on Market Cap, Price/Book, Operating Margin. Profitability is solid with margins at 18.0% and operating margin at 33.0%.

Bear Case : AXP

The primary concerns for AXP are PEG Ratio, Debt/Equity, Altman Z-Score. Debt-to-equity of 1.73 is elevated, increasing financial risk.

Bear Case : BRK-B

The primary concerns for BRK-B are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

AXP profiles as a mature stock while BRK-B is a declining play — different risk/reward profiles.

AXP carries more volatility with a beta of 1.15 — expect wider price swings.

AXP is growing revenue faster at 10.6% — sustainability is the question.

BRK-B generates stronger free cash flow (5.0B), providing more financial flexibility.

Bottom Line

AXP scores higher overall (66/100 vs 54/100), backed by strong 16.2% margins and 10.6% revenue growth. Both earn "Strong 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.

American Express Company

FINANCIAL SERVICES · CREDIT SERVICES · USA

The American Express Company is a multinational financial services corporation headquartered at 200 Vesey Street in the Battery Park City neighborhood of Lower Manhattan in New York City.

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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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