Brookfield Asset Management (NYSE: BAM) is one of 53 public companies in the “Investment Management & Fund Operators” industry, but how does it weigh in compared to its competitors? We will compare Brookfield Asset Management to similar businesses based off the strength of its earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Profitability

This table compares Brookfield Asset Management and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Asset Management 4.87% 2.10% 0.84%
Brookfield Asset Management Competitors -45.68% 10.48% 5.75%

Insider and Institutional Ownership

53.8% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 62.1% of shares of all “Investment Management & Fund Operators” companies are owned by institutional investors. 10.4% of shares of all “Investment Management & Fund Operators” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Brookfield Asset Management and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Asset Management 0 1 7 0 2.88
Brookfield Asset Management Competitors 357 1771 1789 62 2.39

Brookfield Asset Management currently has a consensus target price of $43.56, indicating a potential upside of 11.58%. All “Investment Management & Fund Operators” companies have a potential upside of 6.28%. Given Brookfield Asset Management’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Brookfield Asset Management is more favorable than its competitors.

Volatility and Risk

Brookfield Asset Management has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, Brookfield Asset Management’s competitors have a beta of 1.23, suggesting that their average share price is 23% more volatile than the S&P 500.

Dividends

Brookfield Asset Management pays an annual dividend of $0.56 per share and has a dividend yield of 1.4%. Brookfield Asset Management pays out 43.8% of its earnings in the form of a dividend. As a group, “Investment Management & Fund Operators” companies pay a dividend yield of 2.9% and pay out 49.4% of their earnings in the form of a dividend. Brookfield Asset Management has increased its dividend for 5 consecutive years.

Earnings and Valuation

This table compares Brookfield Asset Management and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Brookfield Asset Management $30.02 billion $8.47 billion 30.50
Brookfield Asset Management Competitors $3.00 billion $962.04 million 6.21

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

Summary

Brookfield Asset Management beats its competitors on 8 of the 15 factors compared.

Brookfield Asset Management Company Profile

Brookfield Asset Management Inc. is an alternative asset manager. The Company operates in eight segments. The Asset Management segment manages its listed partnerships, private funds and public markets on behalf of its clients. The Property segment includes the ownership, operation and development of office, retail and other properties. The Renewable power segment operates and develops hydroelectric, wind power and other generating facilities. The Infrastructure segment includes the ownership, operation and development of utilities and agricultural operations, among others. The Residential development segment includes homebuilding, condominium development and land development. The Service activities segment includes construction management and contracting services and property services. The Private equity segment includes the investments and operations overseen by its private equity group. The Corporate activities segment includes the allocation of capital to its operating platforms.

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