Brookfield Business (NYSE:BBUC – Get Free Report) and WillScot (NASDAQ:WSC – Get Free Report) are both mid-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
85.0% of Brookfield Business shares are owned by institutional investors. Comparatively, 95.8% of WillScot shares are owned by institutional investors. 3.4% of WillScot shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Brookfield Business and WillScot”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Business | $27.46 billion | 0.21 | -$26.00 million | ($0.39) | -70.00 |
| WillScot | $2.28 billion | 1.55 | -$52.99 million | ($0.38) | -51.21 |
Brookfield Business has higher revenue and earnings than WillScot. Brookfield Business is trading at a lower price-to-earnings ratio than WillScot, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Brookfield Business has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, WillScot has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500.
Dividends
Brookfield Business pays an annual dividend of $0.25 per share and has a dividend yield of 0.9%. WillScot pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Brookfield Business pays out -64.1% of its earnings in the form of a dividend. WillScot pays out -73.7% 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. WillScot is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Brookfield Business and WillScot’s 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% |
| WillScot | -3.00% | 21.62% | 3.39% |
Analyst Recommendations
This is a summary of current ratings and target prices for Brookfield Business and WillScot, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Business | 1 | 2 | 3 | 0 | 2.33 |
| WillScot | 1 | 7 | 3 | 0 | 2.18 |
Brookfield Business currently has a consensus target price of $39.20, suggesting a potential upside of 43.59%. WillScot has a consensus target price of $26.50, suggesting a potential upside of 36.18%. Given Brookfield Business’ stronger consensus rating and higher possible upside, research analysts clearly believe Brookfield Business is more favorable than WillScot.
Summary
WillScot beats Brookfield Business on 10 of the 15 factors compared between the two stocks.
About Brookfield Business
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.
About WillScot
WillScot Holdings Corporation provides workspace and portable storage solutions in the United States, Canada, and Mexico. It operates in two segments, Modular Solutions and Storage Solutions. Its modular solutions include panelized and stackable offices, single-wide modular space units, section modulars and redi-plex, classrooms, ground level offices, blast-resistant modules, clearspan structures, and other modular space; and portable storage solutions, such as portable and cold storage containers, as well as trailers. The company leases modular space and portable storage units to customers in the construction, commercial and industrial, retail and wholesale trade, energy and natural resources, education, government and institutions, and healthcare markets. The company offers its solutions primarily under the WillScot and Mobile Mini brand names. The company was formerly known as WillScot Mobile Mini Holdings Corp. and changed its name to WillScot Holdings Corporation in July 2024. WillScot Mobile Mini Holdings Corp. is headquartered in Phoenix, Arizona.
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