Critical Contrast: Brookfield Business (BBUC) versus Its Rivals

Brookfield Business (NYSE:BBUC) is one of 191 publicly-traded companies in the “Construction & Engineering” industry, but how does it weigh in compared to its rivals? We will compare Brookfield Business to similar businesses based on the strength of its dividends, analyst recommendations, profitability, institutional ownership, earnings, risk and valuation.

Institutional and Insider Ownership

85.0% of Brookfield Business shares are owned by institutional investors. Comparatively, 48.3% of shares of all “Construction & Engineering” companies are owned by institutional investors. 20.8% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Brookfield Business and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Brookfield Business	$7.17 billion	-$26.00 million	-74.41
Brookfield Business Competitors	$9.28 billion	$447.80 million	-5,853.13

Brookfield Business’ rivals have higher revenue and earnings than Brookfield Business. Brookfield Business 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 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.

Risk & Volatility

Brookfield Business has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500. Comparatively, Brookfield Business’ rivals have a beta of 1.65, indicating that their average stock price is 65% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Brookfield Business and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Business	1	2	3	0	2.33
Brookfield Business Competitors	816	3371	7182	345	2.60

Brookfield Business currently has a consensus price target of $39.20, suggesting a potential upside of 35.08%. As a group, “Construction & Engineering” companies have a potential upside of 30.23%. Given Brookfield Business’ higher possible upside, research analysts clearly believe Brookfield Business is more favorable than its rivals.

Profitability

This table compares Brookfield Business and its rivals’ 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	-7.76%	10.84%	4.14%

Summary

Brookfield Business rivals beat Brookfield Business on 10 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.