Brookfield (NYSE:BN – Get Free Report) and Ridgepost Capital (NYSE:RPC – Get Free Report) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.
Risk and Volatility
Brookfield has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500. Comparatively, Ridgepost Capital has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Institutional & Insider Ownership
61.6% of Brookfield shares are owned by institutional investors. Comparatively, 48.0% of Ridgepost Capital shares are owned by institutional investors. 11.0% of Brookfield shares are owned by insiders. Comparatively, 11.8% of Ridgepost Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Brookfield and Ridgepost Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield | 1.85% | 3.93% | 1.22% |
| Ridgepost Capital | 9.03% | 21.02% | 9.21% |
Dividends
Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 1.8%. Brookfield pays out 50.9% of its earnings in the form of a dividend. Ridgepost Capital pays out 64.0% 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. Brookfield has raised its dividend for 2 consecutive years.
Analyst Ratings
This is a summary of recent ratings and target prices for Brookfield and Ridgepost Capital, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield | 1 | 1 | 10 | 1 | 2.85 |
| Ridgepost Capital | 0 | 2 | 2 | 0 | 2.50 |
Brookfield currently has a consensus price target of $57.40, indicating a potential upside of 49.34%. Ridgepost Capital has a consensus price target of $13.00, indicating a potential upside of 48.83%. Given Brookfield’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Brookfield is more favorable than Ridgepost Capital.
Valuation and Earnings
This table compares Brookfield and Ridgepost Capital”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield | $77.06 billion | 1.22 | $1.31 billion | $0.55 | 69.89 |
| Ridgepost Capital | $312.91 million | 3.08 | $19.50 million | $0.25 | 34.94 |
Brookfield has higher revenue and earnings than Ridgepost Capital. Ridgepost Capital is trading at a lower price-to-earnings ratio than Brookfield, indicating that it is currently the more affordable of the two stocks.
Summary
Brookfield beats Ridgepost Capital on 12 of the 18 factors compared between the two stocks.
About Brookfield
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.
About Ridgepost Capital
P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.
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