Analyzing Brookfield Business (BBUC) and Its Rivals

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

Risk & Volatility

Brookfield Business has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Brookfield Business’ peers have a beta of 1.59, indicating that their average share price is 59% more volatile than the S&P 500.

Insider & Institutional Ownership

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

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.

Analyst Ratings

This is a summary of recent recommendations and price targets for Brookfield Business and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Business	1	2	3	0	2.33
Brookfield Business Competitors	824	3388	7210	348	2.60

Brookfield Business presently has a consensus target price of $39.20, suggesting a potential upside of 43.59%. As a group, “Construction & Engineering” companies have a potential upside of 37.62%. Given Brookfield Business’ higher possible upside, research analysts clearly 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	-4.00%	3.87%	3.80%

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Brookfield Business	$27.46 billion	-$26.00 million	-70.00
Brookfield Business Competitors	$9.47 billion	$451.69 million	-5,854.46

Brookfield Business has higher revenue, but lower earnings than its peers. 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 9 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.