Comparing Brookfield Business (BBUC) and Its Peers

Brookfield Business (NYSE:BBUCGet Free Report) is one of 189 public companies in the “Construction & Engineering” industry, but how does it weigh in compared to its peers? We will compare Brookfield Business to similar businesses based on the strength of its risk, analyst recommendations, valuation, dividends, institutional ownership, earnings and profitability.

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 813 3394 7218 353 2.60

Brookfield Business currently has a consensus price target of $39.20, indicating a potential upside of 53.21%. As a group, “Construction & Engineering” companies have a potential upside of 41.81%. Given Brookfield Business’ higher probable upside, equities research analysts plainly believe Brookfield Business is more favorable than its peers.

Risk and Volatility

Brookfield Business has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Brookfield Business’ peers have a beta of 1.61, suggesting that their average share price is 61% more volatile than the S&P 500.

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 -4.01% 3.87% 3.79%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Brookfield Business $7.17 billion -$26.00 million -65.60
Brookfield Business Competitors $9.47 billion $456.08 million -5,856.09

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.

Dividends

Brookfield Business pays an annual dividend of $0.25 per share and has a dividend yield of 1.0%. 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 2.4% and pay out 26.5% of their earnings in the form of a dividend.

Institutional and Insider Ownership

85.0% of Brookfield Business shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Construction & Engineering” companies are owned by institutional investors. 21.0% of shares of all “Construction & Engineering” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

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

About Brookfield Business

(Get Free Report)

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.

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