Sparta Commercial Services (OTCMKTS:SRCO) versus Brookfield Asset Management (NYSE:BAM) Critical Review

Brookfield Asset Management (NYSE:BAM) and Sparta Commercial Services (OTCMKTS:SRCO) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Earnings & Valuation

This table compares Brookfield Asset Management and Sparta Commercial Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Asset Management	$4.82 billion	14.85	$2.49 billion	$1.52	28.74
Sparta Commercial Services	$240,000.00	20.98	-$2.12 million	($0.04)	-2.38

Brookfield Asset Management has higher revenue and earnings than Sparta Commercial Services. Sparta Commercial Services is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

68.4% of Brookfield Asset Management shares are held by institutional investors. 11.0% of Brookfield Asset Management shares are held by company insiders. Comparatively, 0.5% of Sparta Commercial Services shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Brookfield Asset Management and Sparta Commercial Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	2	8	7	1	2.39
Sparta Commercial Services	0	0	0	0	0.00

Brookfield Asset Management currently has a consensus target price of $63.18, suggesting a potential upside of 44.62%. Given Brookfield Asset Management’s stronger consensus rating and higher possible upside, equities analysts clearly believe Brookfield Asset Management is more favorable than Sparta Commercial Services.

Risk and Volatility

Brookfield Asset Management has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Sparta Commercial Services has a beta of -0.36, meaning that its stock price is 136% less volatile than the S&P 500.

Profitability

This table compares Brookfield Asset Management and Sparta Commercial Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Asset Management	51.59%	29.81%	16.67%
Sparta Commercial Services	-490.70%	N/A	-204.88%

Summary

Brookfield Asset Management beats Sparta Commercial Services on 14 of the 15 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

About Sparta Commercial Services

Sparta Commercial Services, Inc. develops, markets, and manages business websites and mobile applications for smartphones and tablets under the iMobileApp name. It offers mobile applications for vehicle dealerships, racetracks, private clubs, country clubs, schools and entertainment venues, restaurants, grocery stores, and various other merchant types. The company also owns and manages websites, which sell motorcycle, recreational vehicle, and truck title history reports for consumers, retailers, municipals, nonprofits, auction houses, banks, and insurance companies; and designs, launches, maintains, and hosts websites for businesses, as well as provides text messaging services. In addition, it offers eCommerce, customer relationship management development and integration, search engine optimization, social media marketing, and online reviews website services to its clients. Further, the company provides an equipment-leasing product for local and state agencies that helps to finance their essential equipment needs, including police motorcycles, cruisers, buses, fire trucks, and EMS equipment; and a range of hemp-derived cannabinol products through newworldhealthcbd.com. The company was incorporated in 1980 and is headquartered in New York, New York.