Brookfield Business Partners (NYSE: BBU) and Vallourec (OTCMKTS:VLOWY) are both mid-cap business services companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Volatility & Risk
Brookfield Business Partners has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Vallourec has a beta of 2.62, suggesting that its stock price is 162% more volatile than the S&P 500.
65.7% of Brookfield Business Partners shares are owned by institutional investors. Comparatively, 0.0% of Vallourec shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Brookfield Business Partners pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Vallourec does not pay a dividend.
This table compares Brookfield Business Partners and Vallourec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Business Partners||0.94%||5.30%||2.10%|
This is a summary of recent recommendations for Brookfield Business Partners and Vallourec, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Business Partners||0||0||5||0||3.00|
Brookfield Business Partners presently has a consensus target price of $41.00, suggesting a potential upside of 14.40%. Given Brookfield Business Partners’ higher probable upside, equities analysts plainly believe Brookfield Business Partners is more favorable than Vallourec.
Valuation & Earnings
This table compares Brookfield Business Partners and Vallourec’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Business Partners||$22.82 billion||0.10||-$58.00 million||N/A||N/A|
|Vallourec||$4.24 billion||0.69||-$606.97 million||N/A||N/A|
Brookfield Business Partners has higher revenue and earnings than Vallourec.
Brookfield Business Partners beats Vallourec on 9 of the 11 factors compared between the two stocks.
Brookfield Business Partners Company Profile
Brookfield Business Partners L.P. specializes in investments in business services and industrials sector. It seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Asset Management Inc.
Vallourec Company Profile
Vallourec SA, through its subsidiaries, provides tubular solutions primarily for the energy markets and other industrial applications in the European Union, North America, South America, Asia, the Middle East, and internationally. It operates through Seamless Tubes and Specialty Products segments. The company produces hot-rolled seamless carbon and alloy steel tubes for the oil and gas, power generation, chemical and petrochemical, and automotive and mechanical engineering industries, as well as produces stainless steel and titanium tubes. It also offers casing and tubing products, and accessories for oil and gas well equipment; well-drilling products, including drill pipes, hole assemblies, and VAM connections and accessories for drill strings; and offshore and onshore line pipes and accessories, as well as tubes for umbilicals. In addition, the company provides hydrocarbon processing tubes; steam tubes and pipes for power plants; titanium and stainless steel welded tubes used in nuclear and conventional power plants; and steam generator tubes for nuclear power plants. Further, it offers hot-rolled pipes and hollow sections used in various applications, including drilling and other platforms, bridges, buildings and other roofed structures, cranes, agricultural and industrial machinery, mechanical components and systems, mining, and offshore projects. Additionally, the company provides coating and welding services for offshore and onshore projects. Vallourec SA was founded in 1899 and is headquartered in Boulogne-Billancourt, France.
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