Head-To-Head Contrast: Brookfield Asset Management (BAM) & Safeguard Scientifics (SFE)
Safeguard Scientifics (NYSE: SFE) and Brookfield Asset Management (NYSE:BAM) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.
Volatility & Risk
Safeguard Scientifics has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.
This table compares Safeguard Scientifics and Brookfield Asset Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Asset Management||1.70%||0.86%||0.34%|
Earnings and Valuation
This table compares Safeguard Scientifics and Brookfield Asset Management’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Safeguard Scientifics||N/A||N/A||-$22.26 million||($4.49)||-2.92|
|Brookfield Asset Management||$24.41 billion||1.70||$1.65 billion||$0.45||93.38|
Brookfield Asset Management has higher revenue and earnings than Safeguard Scientifics. Safeguard Scientifics 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.
Insider & Institutional Ownership
77.9% of Safeguard Scientifics shares are held by institutional investors. Comparatively, 52.1% of Brookfield Asset Management shares are held by institutional investors. 2.1% of Safeguard Scientifics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Brookfield Asset Management pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Safeguard Scientifics does not pay a dividend. Brookfield Asset Management pays out 124.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management has raised its dividend for 5 consecutive years.
This is a breakdown of current recommendations and price targets for Safeguard Scientifics and Brookfield Asset Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Asset Management||0||0||6||0||3.00|
Brookfield Asset Management has a consensus price target of $47.00, suggesting a potential upside of 11.85%. Given Brookfield Asset Management’s higher possible upside, analysts plainly believe Brookfield Asset Management is more favorable than Safeguard Scientifics.
Brookfield Asset Management beats Safeguard Scientifics on 10 of the 14 factors compared between the two stocks.
About Safeguard Scientifics
Safeguard Scientifics, Inc. is engaged in providing capital to technology companies within the fields of healthcare, financial services and digital media. The Company holds interest in companies, which it refers to as partner companies. As of December 31, 2016, the Company held interests in 29 non-consolidated partner companies. The Company offers operational and management support to each of its partner companies. In addition to management and operational support, the Company offers ongoing planning and development assessment. It provides mentoring, advice and guidance to develop partner company management. The Company serves on the boards of directors of its partner companies, working with them to develop and implement strategic and operating plans. It measures and monitors achievement of these plans through regular review of operational and financial performance measurements.
About Brookfield Asset Management
Brookfield Asset Management Inc. is an alternative asset manager. The Company operates in eight segments. The Asset Management segment manages its listed partnerships, private funds and public markets on behalf of its clients. The Property segment includes the ownership, operation and development of office, retail and other properties. The Renewable power segment operates and develops hydroelectric, wind power and other generating facilities. The Infrastructure segment includes the ownership, operation and development of utilities and agricultural operations, among others. The Residential development segment includes homebuilding, condominium development and land development. The Service activities segment includes construction management and contracting services and property services. The Private equity segment includes the investments and operations overseen by its private equity group. The Corporate activities segment includes the allocation of capital to its operating platforms.
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