Brookfield Asset Management (NYSE:BAM – Get Free Report) and BrightSphere Investment Group (NYSE:BSIG – 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, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Profitability
This table compares Brookfield Asset Management and BrightSphere Investment Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Asset Management | 51.29% | 92.37% | 65.35% |
| BrightSphere Investment Group | 15.00% | 871.33% | 15.43% |
Institutional and Insider Ownership
68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 98.7% of BrightSphere Investment Group shares are owned by institutional investors. 11.0% of Brookfield Asset Management shares are owned by company insiders. Comparatively, 27.7% of BrightSphere Investment Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Asset Management | $390.00 million | 60.59 | $451.00 million | $1.10 | 48.35 |
| BrightSphere Investment Group | $453.20 million | 2.24 | $65.80 million | $1.65 | 16.62 |
Brookfield Asset Management has higher earnings, but lower revenue than BrightSphere Investment Group. BrightSphere Investment Group is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Brookfield Asset Management has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500. Comparatively, BrightSphere Investment Group has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.
Dividends
Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 2.9%. BrightSphere Investment Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.1%. Brookfield Asset Management pays out 138.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BrightSphere Investment Group pays out 2.4% of its earnings in the form of a dividend.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Brookfield Asset Management and BrightSphere Investment Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Asset Management | 1 | 5 | 5 | 0 | 2.36 |
| BrightSphere Investment Group | 1 | 0 | 1 | 0 | 2.00 |
Brookfield Asset Management presently has a consensus price target of $48.32, indicating a potential downside of 9.16%. BrightSphere Investment Group has a consensus price target of $28.00, indicating a potential upside of 2.08%. Given BrightSphere Investment Group’s higher possible upside, analysts clearly believe BrightSphere Investment Group is more favorable than Brookfield Asset Management.
Summary
Brookfield Asset Management beats BrightSphere Investment Group on 9 of the 16 factors compared between the two stocks.
About Brookfield Asset Management
Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.
About BrightSphere Investment Group
BrightSphere Investment Group Inc. is a publically owned asset management holding company. The firm provides its services to individuals and institutions. It manages separate client focused portfolios through its subsidiaries. The firm also launches equity mutual funds for its clients. It invests in public equity, fixed income, and alternative investment markets through its subsidiaries. The firm was founded in 1980 is based Boston, Massachusetts. It was formally known as BrightSphere Investment Group plc. BrightSphere Investment Group Inc. was formed in 1980 and is based in Boston, Massachusetts.
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