WallStSmart

Berkshire Hathaway Inc (BRK-B)vsPayPal Holdings Inc (PYPL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Berkshire Hathaway Inc generates 1020% more annual revenue ($371.44B vs $33.17B). BRK-B leads profitability with a 18.0% profit margin vs 15.8%. PYPL appears more attractively valued with a PEG of 0.69. PYPL earns a higher WallStSmart Score of 78/100 (B+).

BRK-B

Buy

54

out of 100

Grade: C-

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

PYPL

Strong Buy

78

out of 100

Grade: B+

Growth: 6.7Profit: 8.0Value: 10.0Quality: 7.0
Piotroski: 6/9Altman Z: 1.66
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BRK-BSignificantly Overvalued (-134.4%)

Margin of Safety

-134.4%

Fair Value

$210.94

Current Price

$479.33

$268.39 premium

UndervaluedFair: $210.94Overvalued
PYPLUndervalued (+82.3%)

Margin of Safety

+82.3%

Fair Value

$253.19

Current Price

$44.85

$208.34 discount

UndervaluedFair: $253.19Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

PYPL6 strengths · Avg: 8.5/10
P/E RatioValuation
8.2x10/10

Attractively priced relative to earnings

Return on EquityProfitability
25.7%9/10

Every $100 of equity generates 26 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

EPS GrowthGrowth
39.4%8/10

Earnings expanding 39.4% YoY

Free Cash FlowQuality
$2.19B8/10

Generating 2.2B in free cash flow

Areas to Watch

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%

PYPL2 concerns · Avg: 4.0/10
Revenue GrowthGrowth
3.7%4/10

3.7% revenue growth

Altman Z-ScoreHealth
1.664/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : PYPL

The strongest argument for PYPL centers on P/E Ratio, Return on Equity, PEG Ratio. Profitability is solid with margins at 15.8% and operating margin at 17.5%. PEG of 0.69 suggests the stock is reasonably priced for its growth.

Bear Case : BRK-B

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

Bear Case : PYPL

The primary concerns for PYPL are Revenue Growth, Altman Z-Score.

Key Dynamics to Monitor

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

PYPL carries more volatility with a beta of 1.46 — expect wider price swings.

PYPL is growing revenue faster at 3.7% — sustainability is the question.

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

Bottom Line

PYPL scores higher overall (78/100 vs 54/100), backed by strong 15.8% margins. 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.

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%).

PayPal Holdings Inc

FINANCIAL SERVICES · CREDIT SERVICES · USA

PayPal Holdings, Inc. is an American company operating an online payments system in the majority of countries that support online money transfers, and serves as an electronic alternative to traditional paper methods like checks and money orders. The company operates as a payment processor for online vendors, auction sites, and many other commercial users, for which it charges a fee.

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