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BRK.B vs. MSFT: Berkshire Hathaway vs. Microsoft Stock Comparison

This page compares Berkshire Hathaway (BRK.B) with Microsoft (MSFT) using performance and risk, profitability, financial strength, growth, dividends, and valuation metrics.

Performance

Cumulative Growth

BRK.B
MSFT
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Berkshire Hathaway (BRK.B) and Microsoft (MSFT). Returns over one year are annualized.

Performance at a Glance

Performance metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
1-Year Return-0.22%-17.75%

Risk

Drawdown

BRK.B
MSFT
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Risk metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
1-Year Volatility14.40%25.44%
Beta0.621.13
3-Month Avg. Volume4.85M34.88M

Company Profile

Berkshire Hathaway (BRK.B) is classified in the Financials sector (Financial Services), whereas Microsoft (MSFT) belongs to Information Technology (Software & Services) — their GICS classifications point to very different parts of the market.

Company profile comparison for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
Profile ItemBRK.BMSFT
NameBerkshire Hathaway Inc. Class BMicrosoft Corp.
Country/RegionUnited StatesUnited States
GICS SectorFinancialsInformation Technology
GICS Industry GroupFinancial ServicesSoftware & Services
GICS IndustryFinancial ServicesSoftware
GICS Sub-IndustryMulti-Sector HoldingsSystems Software
Market Capitalization1,055.24 billion USD2,902.59 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateMay 9, 1996March 13, 1986
Security TypeCommon StockCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Both Berkshire Hathaway (BRK.B) at 14.56 and Microsoft (MSFT) at 23.29 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

BRK.B

Financial Services industry group

14.56

Max
47.33
Q3
25.83
Median
14.56
BRK.B
14.56
Q1
9.03
Min
0.60

MSFT

Software & Services industry group

23.29

Max
106.12
Q3
56.70
Median
30.10
MSFT
23.29
Q1
15.65
Min
0.39
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their P/E ratio against their respective Financial Services and Software & Services industry group benchmarks.

Price-to-Sales Ratio (TTM)

Berkshire Hathaway (BRK.B) at 2.81 is priced about in line with its industry on P/S ratio, while Microsoft (MSFT) at 9.12 sits in the pricier quartile — MSFT costs more per dollar of sales.

BRK.B

Financial Services industry group

2.81

Max
9.45
Q3
4.84
Median
2.86
BRK.B
2.81
Q1
1.48
Min
-1.12

MSFT

Software & Services industry group

9.12

Max
18.75
MSFT
9.12
Q3
8.80
Median
3.97
Q1
2.05
Min
0.02
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their P/S ratio against their respective Financial Services and Software & Services industry group benchmarks.

Price-to-Book Ratio (MRQ)

Berkshire Hathaway (BRK.B) at 0.00 sits in the lower P/B ratio quartile against book while Microsoft (MSFT) at 7.01 is valued near its industry’s middle — BRK.B is cheaper on assets, though weigh it against ROE and asset quality.

BRK.B

Financial Services industry group

0.00

Max
7.24
Q3
3.50
Median
1.63
Q1
0.92
BRK.B
0.00
Min
0.00

MSFT

Software & Services industry group

7.01

Max
16.52
Q3
8.04
MSFT
7.01
Median
3.96
Q1
1.96
Min
-6.70
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their P/B ratio against their respective Financial Services and Software & Services industry group benchmarks.

Valuation at a Glance

Valuation metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Price-to-Earnings Ratio (TTM)14.5623.29
Price-to-Sales Ratio (TTM)2.819.12
Price-to-Book Ratio (MRQ)0.007.01
Free Cash Flow Yield--1.28%

Profitability

Return on Equity (TTM)

Microsoft (MSFT) at 34.01% sits in the top ROE quartile, while Berkshire Hathaway (BRK.B) at 10.50% is closer to the peer norm — stronger capital efficiency for MSFT.

BRK.B

Financial Services industry group

10.50%

Max
42.17%
Q3
21.40%
Median
12.18%
BRK.B
10.50%
Q1
5.01%
Min
-18.74%

MSFT

Software & Services industry group

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.49%
Median
5.29%
Q1
-13.69%
Min
-58.43%
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their ROE against their respective Financial Services and Software & Services industry group benchmarks.

Net Profit Margin (TTM)

Microsoft (MSFT) at 39.34% retains a top-quartile share of revenue as profit, ahead of Berkshire Hathaway (BRK.B) at 19.31%, which keeps about the industry-typical share.

BRK.B

Financial Services industry group

19.31%

Max
66.55%
Q3
30.41%
BRK.B
19.31%
Median
16.58%
Q1
4.49%
Min
-26.88%

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
14.93%
Median
3.32%
Q1
-6.49%
Min
-34.99%
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their net margin against their respective Financial Services and Software & Services industry group benchmarks.

Operating Profit Margin (TTM)

Microsoft (MSFT) at 46.33% operates in the top operating margin quartile, ahead of Berkshire Hathaway (BRK.B) at 14.35%, which runs around its industry’s norm.

BRK.B

Financial Services industry group

14.35%

Max
95.95%
Q3
50.01%
Median
27.45%
BRK.B
14.35%
Q1
12.28%
Min
-36.26%

MSFT

Software & Services industry group

46.33%

Max
60.45%
MSFT
46.33%
Q3
16.49%
Median
4.46%
Q1
-12.92%
Min
-54.21%
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their operating margin against their respective Financial Services and Software & Services industry group benchmarks.

Profitability at a Glance

Profitability metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Return on Equity (TTM)10.50%34.01%
Return on Assets (TTM)5.39%14.81%
Net Profit Margin (TTM)19.31%39.34%
Operating Profit Margin (TTM)14.35%46.33%
Gross Profit Margin (TTM)--68.31%

Growth

Revenue Growth

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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their Revenue Growth across different time periods.

Revenue Growth at a Glance

Revenue growth metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
1-Year Revenue Growth-3.23%14.93%
3-Year Revenue CAGR20.59%12.42%

EPS Growth

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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their EPS Growth across different time periods.

EPS Growth at a Glance

EPS growth metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
1-Year EPS Growth-24.78%15.59%
3-Year EPS CAGR--12.23%

Financial Strength

Current Ratio (MRQ)

Microsoft (MSFT) shows current ratio of 1.28; Berkshire Hathaway (BRK.B) doesn’t get one — Financial Services balance sheets aren’t split into current and non-current buckets, so short-term liquidity there is judged through regulatory measures instead.

BRK.B

Financial Services industry group

--

BRK.B
--
Max
--
Q3
--
Median
--
Q1
--
Min
--

MSFT

Software & Services industry group

1.28

Max
5.55
Q3
2.88
Median
1.73
MSFT
1.28
Q1
1.07
Min
0.03
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): BRK.B’s current ratio is not assessed under the Financial Services industry convention, so the chart shows available visual context for MSFT only.

Debt-to-Equity Ratio (MRQ)

Microsoft (MSFT) shows debt-to-equity ratio of 0.30; for Berkshire Hathaway (BRK.B) the ratio is set aside — in Financial Services, balance-sheet leverage is part of the business model itself, so capital-adequacy measures do the job this ratio does elsewhere.

BRK.B

Financial Services industry group

--

BRK.B
--
Max
--
Q3
--
Median
--
Q1
--
Min
--

MSFT

Software & Services industry group

0.30

Max
2.31
Q3
1.06
Median
0.32
MSFT
0.30
Q1
0.06
Min
0.00
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): BRK.B’s debt-to-equity ratio is not assessed under the Financial Services industry convention, so the chart shows available visual context for MSFT only.

Financial Strength at a Glance

Financial strength metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Current Ratio (MRQ)--1.28
Debt-to-Equity Ratio (MRQ)--0.30
Net Debt / EBITDA--0.26

Dividends

Dividend Yield (TTM)

Berkshire Hathaway (BRK.B) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a yield of 0.93%, ranking against industry peers normally.

BRK.B

Financial Services industry group

0.00%

Max
18.40%
Q3
7.73%
Median
1.93%
BRK.B
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.93%

MSFT
0.93%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their dividend yield against their respective Financial Services and Software & Services industry group benchmarks.

Dividend Payout Ratio (TTM)

Berkshire Hathaway (BRK.B) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Microsoft (MSFT) reports a payout of 20.73%, ranking against industry peers normally.

BRK.B

Financial Services industry group

0.00%

Max
228.57%
Q3
95.72%
Median
25.56%
BRK.B
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

20.73%

MSFT
20.73%
Max
0.00%
Q3
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT): A comparison of their payout ratio against their respective Financial Services and Software & Services industry group benchmarks.

Dividends at a Glance

Dividend metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Dividend Yield (TTM)0.00%0.93%
Dividend Payout Ratio (TTM)0.00%20.73%