Brookfield (BN) and Its Competitors Critical Survey

Brookfield (NYSE:BN) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its rivals? We will compare Brookfield to related companies based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Profitability

This table compares Brookfield and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.85%	3.93%	1.22%
Brookfield Competitors	311.61%	79.26%	3.71%

Earnings and Valuation

This table compares Brookfield and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Brookfield	$75.10 billion	$1.31 billion	73.97
Brookfield Competitors	$5.23 billion	$396.39 million	16.23

Brookfield has higher revenue and earnings than its rivals. Brookfield is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Brookfield pays out 50.9% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend. Brookfield has raised its dividend for 2 consecutive years. Brookfield lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations for Brookfield and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	1	1	10	1	2.85
Brookfield Competitors	5539	20097	22425	641	2.37

Brookfield currently has a consensus target price of $57.40, indicating a potential upside of 41.09%. As a group, “Capital Markets” companies have a potential upside of 26.43%. Given Brookfield’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield is more favorable than its rivals.

Insider & Institutional Ownership

61.6% of Brookfield shares are held by institutional investors. Comparatively, 30.6% of shares of all “Capital Markets” companies are held by institutional investors. 11.0% of Brookfield shares are held by insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Brookfield has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Brookfield’s rivals have a beta of 0.80, suggesting that their average share price is 20% less volatile than the S&P 500.

Summary

Brookfield beats its rivals on 9 of the 15 factors compared.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.