Brookfield (NYSE:BN) & Great Elm Capital Group (NASDAQ:GECC) Head-To-Head Survey

Great Elm Capital Group (NASDAQ:GECC – Get Free Report) and Brookfield (NYSE:BN – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, risk, institutional ownership, valuation, analyst recommendations and dividends.

Volatility and Risk

Great Elm Capital Group has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Brookfield has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.

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Insider & Institutional Ownership

38.8% of Great Elm Capital Group shares are owned by institutional investors. Comparatively, 61.6% of Brookfield shares are owned by institutional investors. 3.9% of Great Elm Capital Group shares are owned by company insiders. Comparatively, 11.0% of Brookfield shares are owned 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.

Dividends

Great Elm Capital Group pays an annual dividend of $1.00 per share and has a dividend yield of 20.0%. Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. Great Elm Capital Group pays out -33.9% of its earnings in the form of a dividend. Brookfield pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Great Elm Capital Group has increased its dividend for 2 consecutive years and Brookfield has increased its dividend for 2 consecutive years. Great Elm Capital Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Great Elm Capital Group and Brookfield”s revenue, earnings per share and valuation.

Brookfield has higher revenue and earnings than Great Elm Capital Group. Great Elm Capital Group is trading at a lower price-to-earnings ratio than Brookfield, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Great Elm Capital Group and Brookfield, as reported by MarketBeat.

Great Elm Capital Group presently has a consensus target price of $10.00, suggesting a potential upside of 99.60%. Brookfield has a consensus target price of $57.40, suggesting a potential upside of 55.28%. Given Great Elm Capital Group’s higher probable upside, research analysts plainly believe Great Elm Capital Group is more favorable than Brookfield.

Profitability

This table compares Great Elm Capital Group and Brookfield’s net margins, return on equity and return on assets.

Summary

Brookfield beats Great Elm Capital Group on 11 of the 17 factors compared between the two stocks.

About Great Elm Capital Group

(Get Free Report)

Great Elm Capital Corp. is a business development company which specializes in loan and mezzanine, middle market investments. It invests in the debt instruments of middle market companies. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.

About Brookfield

(Get Free Report)

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

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