Contrasting Brookfield Business (BBUC) and Its Competitors

Brookfield Business (NYSE:BBUC) is one of 190 publicly-traded companies in the “Construction & Engineering” industry, but how does it contrast to its peers? We will compare Brookfield Business to similar companies based on the strength of its earnings, risk, institutional ownership, dividends, profitability, analyst recommendations and valuation.

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 2.1% and pay out 24.6% of their earnings in the form of a dividend.

Insider & Institutional Ownership

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

Risk and Volatility

Brookfield Business has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Brookfield Business’ peers have a beta of 1.60, meaning that their average share price is 60% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Brookfield Business and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Business	1	2	3	0	2.33
Brookfield Business Competitors	823	3387	7205	348	2.60

Brookfield Business currently has a consensus target price of $39.20, suggesting a potential upside of 43.73%. As a group, “Construction & Engineering” companies have a potential upside of 38.22%. Given Brookfield Business’ higher probable upside, research analysts plainly believe Brookfield Business is more favorable than its peers.

Profitability

This table compares Brookfield Business and its peers’ 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	-4.02%	3.72%	3.77%

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Brookfield Business	$7.17 billion	-$26.00 million	-69.93
Brookfield Business Competitors	$9.38 billion	$451.69 million	-5,854.57

Brookfield Business’ peers have higher revenue and earnings than Brookfield Business. Brookfield Business is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Brookfield Business peers beat Brookfield Business on 10 of the 15 factors compared.

Brookfield Business Company Profile

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.