CorVel (NASDAQ:CRVL – Get Free Report) and Brookfield Business Partners (NYSE:BBU – Get Free Report) are both mid-cap business services companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, institutional ownership, dividends, risk, earnings, analyst recommendations and valuation.
Earnings and Valuation
This table compares CorVel and Brookfield Business Partners”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CorVel | $895.59 million | 4.74 | $95.17 million | $1.94 | 42.68 |
| Brookfield Business Partners | $40.62 billion | 0.06 | -$37.00 million | ($0.13) | -209.54 |
Profitability
This table compares CorVel and Brookfield Business Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CorVel | 10.98% | 32.31% | 18.33% |
| Brookfield Business Partners | 3.38% | 6.37% | 1.33% |
Institutional and Insider Ownership
51.4% of CorVel shares are owned by institutional investors. Comparatively, 85.0% of Brookfield Business Partners shares are owned by institutional investors. 44.6% of CorVel shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
CorVel has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, Brookfield Business Partners has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for CorVel and Brookfield Business Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CorVel | 0 | 0 | 0 | 0 | 0.00 |
| Brookfield Business Partners | 0 | 0 | 5 | 0 | 3.00 |
Brookfield Business Partners has a consensus price target of $32.50, indicating a potential upside of 19.31%. Given Brookfield Business Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Business Partners is more favorable than CorVel.
Summary
CorVel beats Brookfield Business Partners on 8 of the 14 factors compared between the two stocks.
About CorVel
CorVel Corporation provides workers’ compensation, auto, liability, and health solutions. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company also offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement, retrospective utilization review, facility claim review, professional review, pharmacy, directed care, clearinghouse, independent medical examination, and inpatient medical bill review services, as well as Medicare solutions. In addition, it provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company offers solutions to employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. CorVel Corporation was incorporated in 1987 and is based in Fort Worth, Texas.
About Brookfield Business Partners
Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. was founded in 2016 and is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Corporation.
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