Brookfield Business (BBUC) & Its Competitors Critical Analysis
by Tristan Rich · The Markets DailyBrookfield Business (NYSE:BBUC – Get Free Report) is one of 191 public companies in the “Construction & Engineering” industry, but how does it weigh in compared to its peers? We will compare Brookfield Business to similar companies based on the strength of its dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
Profitability
This table compares Brookfield Business and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Business | 1.13% | 2.05% | 0.40% |
| Brookfield Business Competitors | -3.96% | 10.85% | 4.21% |
Volatility and Risk
Brookfield Business has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500. Comparatively, Brookfield Business’ peers have a beta of 1.65, suggesting that their average stock price is 65% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for Brookfield Business and its peers, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Business | 1 | 2 | 3 | 0 | 2.33 |
| Brookfield Business Competitors | 824 | 3378 | 7191 | 346 | 2.60 |
Brookfield Business presently has a consensus target price of $39.20, suggesting a potential upside of 39.53%. As a group, “Construction & Engineering” companies have a potential upside of 34.08%. Given Brookfield Business’ higher possible upside, research analysts clearly believe Brookfield Business is more favorable than its peers.
Insider & Institutional Ownership
85.0% of Brookfield Business shares are held by institutional investors. Comparatively, 48.3% of shares of all “Construction & Engineering” companies are held by institutional investors. 20.8% of shares of all “Construction & Engineering” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Dividends
Brookfield Business pays an annual dividend of $0.25 per share and has a dividend yield of 0.9%. Brookfield Business pays out -64.1% of its earnings in the form of a dividend. As a group, “Construction & Engineering” companies pay a dividend yield of 2.0% and pay out 24.6% of their earnings in the form of a dividend.
Earnings & Valuation
This table compares Brookfield Business and its peers revenue, earnings per share and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Brookfield Business | $27.46 billion | -$26.00 million | -72.04 |
| Brookfield Business Competitors | $10.49 billion | $447.61 million | -5,853.93 |
Brookfield Business has higher revenue, but lower earnings than its peers. Brookfield Business is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Summary
Brookfield Business peers beat Brookfield Business on 9 of the 15 factors compared.
About Brookfield Business
Brookfield Business Corporation focuses on healthcare, construction, and wastewater services in the United States, Europe, Australia, the United Kingdom, Canada, and Brazil. It operates through three segments: Business Services, Infrastructure Services, and Industrials. The company operates 42 hospitals; offers construction services for office, residential, hospitality and leisure, social infrastructure, retail, and mixed-use properties; and provides nuclear technology services, such as fuel, maintenance services, engineering solutions, instrumentation and control systems, and manufactured components for nuclear power plants. It also engages in the collection, treatment, and distribution of water and wastewater to the residential and governmental customers. The company was incorporated in 2021 and is headquartered in New York, New York.