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

How do Berkshire Hathaway (BRK.B) and Microsoft (MSFT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

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 Capitalization1,056.10 billion USD2,954.66 billion USD
CurrencyUSDUSD
ExchangeNYSENasdaq
Listing DateMay 9, 1996March 13, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

BRK.B
MSFT
GSPC
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: 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.

Calendar-Year Returns

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Calendar-year total returns for Berkshire Hathaway (BRK.B) and Microsoft (MSFT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Total Return (1Y)3.21%-21.40%
Total Return (3Y, Annualized)12.30%5.80%
Total Return (5Y, Annualized)11.84%8.05%

Risk Profile

Drawdown History

BRK.B
MSFT
GSPC
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Berkshire Hathaway (BRK.B) vs. Microsoft (MSFT), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Berkshire Hathaway (BRK.B) and Microsoft (MSFT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Volatility (1Y, Annualized)14.57%27.54%
Beta (5Y)0.621.12
Max Drawdown (5Y)-26.58%-37.15%
Avg. Volume (3M)5.04M39.13M

Risk-Adjusted Performance

Risk-Return Positioning

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BRK.B and MSFT are plotted by 1-year volatility (risk) and 1-year return. Each dashed Capital Allocation Line uses that stock's own industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Sharpe Ratio (1Y)-0.06-0.92
Sortino Ratio (1Y)-0.08-1.23

Profitability

ROE (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
41.77%
Q3
21.29%
Median
12.38%
BRK.B
10.50%
Q1
4.87%
Min
-16.52%

MSFT

Software & Services industry group

34.01%

Max
53.38%
MSFT
34.01%
Q3
16.62%
Median
5.48%
Q1
-12.77%
Min
-55.27%
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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 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
30.61%
BRK.B
19.31%
Median
16.68%
Q1
5.47%
Min
-26.88%

MSFT

Software & Services industry group

39.34%

Max
44.20%
MSFT
39.34%
Q3
15.06%
Median
3.70%
Q1
-5.19%
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 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
50.63%
Median
27.59%
BRK.B
14.35%
Q1
11.92%
Min
-36.26%

MSFT

Software & Services industry group

46.33%

Max
46.97%
MSFT
46.33%
Q3
16.51%
Median
5.70%
Q1
-9.95%
Min
-43.35%
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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 Metrics

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

Growth

Revenue Growth

Microsoft (MSFT) at 14.93% is around its peer norm for revenue growth, while Berkshire Hathaway (BRK.B) at -3.23% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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

EPS Growth

Microsoft (MSFT) at 15.59% is around its peer norm for EPS growth, while Berkshire Hathaway (BRK.B) at -24.78% drops into the bottom quartile, signaling weaker earnings momentum.

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

Growth Metrics

Growth metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Revenue Growth (YoY)-3.23%14.93%
Revenue Growth (3Y CAGR)20.59%12.42%
EPS Growth (YoY)-24.78%15.59%
EPS Growth (3Y 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
1.70
MSFT
1.28
Q1
1.06
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 / Equity (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
2.62
Q3
1.10
Median
0.31
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 Metrics

Financial strength metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Current Ratio (MRQ)--1.28
Debt / Equity (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 0.88%, ranking against industry peers normally.

BRK.B

Financial Services industry group

0.00%

Max
12.80%
Q3
5.20%
Median
1.04%
BRK.B
0.00%
Q1
0.00%
Min
0.00%

MSFT

Software & Services industry group

0.88%

MSFT
0.88%
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
92.38%
Median
24.87%
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.

Dividend Metrics

Dividend metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
Dividend Yield (TTM)0.00%0.88%
Dividend Payout Ratio (TTM)0.00%20.73%

Valuation

P/E Ratio (TTM)

Both Berkshire Hathaway (BRK.B) at 14.62 and Microsoft (MSFT) at 23.70 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

14.62

Max
48.85
Q3
25.51
Median
15.15
BRK.B
14.62
Q1
9.59
Min
2.06

MSFT

Software & Services industry group

23.70

Max
122.10
Q3
63.18
Median
31.83
MSFT
23.70
Q1
16.77
Min
0.43
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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.

P/S 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 9.28 sits in the pricier quartile — MSFT costs more per dollar of sales.

BRK.B

Financial Services industry group

2.81

Max
9.88
Q3
4.93
Median
2.93
BRK.B
2.81
Q1
1.55
Min
-0.64

MSFT

Software & Services industry group

9.28

Max
18.71
MSFT
9.28
Q3
8.98
Median
4.08
Q1
2.15
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.

P/B Ratio (MRQ)

Berkshire Hathaway (BRK.B) at 0.00 trades below its peer P/B ratio range relative to book, while Microsoft (MSFT) at 7.13 sits near its industry’s middle — BRK.B is the cheaper of the two against assets.

BRK.B

Financial Services industry group

0.00

Max
7.56
Q3
3.60
Median
1.64
Q1
0.90
Min
0.00
BRK.B
0.00

MSFT

Software & Services industry group

7.13

Max
16.97
Q3
8.89
MSFT
7.13
Median
4.00
Q1
1.93
Min
-8.32
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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 Metrics

Valuation metrics for Berkshire Hathaway (BRK.B) and Microsoft (MSFT)
MetricBRK.BMSFT
P/E Ratio (TTM)14.6223.70
P/S Ratio (TTM)2.819.28
P/B Ratio (MRQ)0.007.13
Free Cash Flow Yield (TTM)--1.25%