Brookfield Asset Management (NYSE:BAM) and IRSA Propiedades Comerciales (NASDAQ:IRCP) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.
Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. IRSA Propiedades Comerciales pays an annual dividend of $1.21 per share and has a dividend yield of 5.0%. IRSA Propiedades Comerciales pays out 5.8% of its earnings in the form of a dividend. Brookfield Asset Management has increased its dividend for 6 consecutive years.
This table compares Brookfield Asset Management and IRSA Propiedades Comerciales’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Asset Management||5.49%||3.74%||1.46%|
|IRSA Propiedades Comerciales||333.56%||52.00%||29.72%|
This is a summary of recent ratings and recommmendations for Brookfield Asset Management and IRSA Propiedades Comerciales, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Asset Management||0||0||5||0||3.00|
|IRSA Propiedades Comerciales||0||1||1||0||2.50|
Brookfield Asset Management currently has a consensus target price of $51.70, indicating a potential upside of 27.69%. IRSA Propiedades Comerciales has a consensus target price of $34.00, indicating a potential upside of 40.21%. Given IRSA Propiedades Comerciales’ higher probable upside, analysts clearly believe IRSA Propiedades Comerciales is more favorable than Brookfield Asset Management.
Institutional & Insider Ownership
60.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 6.7% of IRSA Propiedades Comerciales shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Risk and Volatility
Brookfield Asset Management has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, IRSA Propiedades Comerciales has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.
Earnings & Valuation
This table compares Brookfield Asset Management and IRSA Propiedades Comerciales’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brookfield Asset Management||$40.79 billion||0.99||$1.46 billion||N/A||N/A|
|IRSA Propiedades Comerciales||$183.91 million||4.15||$774.62 million||$20.83||1.16|
Brookfield Asset Management has higher revenue and earnings than IRSA Propiedades Comerciales.
Brookfield Asset Management beats IRSA Propiedades Comerciales on 9 of the 15 factors compared between the two stocks.
About Brookfield Asset Management
Brookfield Asset Management Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. Its property business includes owning and managing office properties, developing master planned residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services. Through its subsidiaries, the firm operates hydroelectric power facilities, interconnections and transmission facilities in Northeast North America, and development of wind power in Canada. Through its subsidiaries, it invests in specialty funds including private equity and makes direct investments in real estate, energy, and resource assets. The firm launches and manages equity and fixed income mutual funds. It also manages real estate and hedge funds. The firm invests in equity and fixed income markets across the globe. It was formerly known as Brascan Corp. Brookfield Asset Management Inc. is based in Toronto, Canada with additional offices in Bogota, Colombia, Rio de Janeiro, Brazil, Calgary, Canada, Dubai, United Arab Emirates, Gatineau, Canada, Hong Kong, Hong Kong, London, United Kingdom, Melbourne, Australia, Montreal, Canada, Mumbai, India, New York City, Perth, Australia, Shanghai, China, and Sydney, Australia.
About IRSA Propiedades Comerciales
IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.
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