Analyzing Brookfield Asset Management (BAM) and IRSA Propiedades Comerciales (IRCP)

Brookfield Asset Management (NYSE:BAM) and IRSA Propiedades Comerciales (NASDAQ:IRCP) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Valuation and Earnings

This table compares Brookfield Asset Management and IRSA Propiedades Comerciales’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Asset Management $40.79 billion 1.00 $1.46 billion N/A N/A
IRSA Propiedades Comerciales $183.91 million 4.22 $774.62 million $20.83 1.18

Brookfield Asset Management has higher revenue and earnings than IRSA Propiedades Comerciales.

Dividends

Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. IRSA Propiedades Comerciales pays an annual dividend of $1.21 per share and has a dividend yield of 4.9%. IRSA Propiedades Comerciales pays out 5.8% of its earnings in the form of a dividend. Brookfield Asset Management has raised its dividend for 6 consecutive years.

Profitability

This table compares Brookfield Asset Management and IRSA Propiedades Comerciales’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Asset Management 5.49% 3.74% 1.46%
IRSA Propiedades Comerciales 333.56% 52.00% 29.72%

Insider and Institutional Ownership

60.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 6.7% of IRSA Propiedades Comerciales shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations for Brookfield Asset Management and IRSA Propiedades Comerciales, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Asset Management 0 0 5 0 3.00
IRSA Propiedades Comerciales 0 1 1 0 2.50

Brookfield Asset Management presently has a consensus price target of $51.70, indicating a potential upside of 25.79%. IRSA Propiedades Comerciales has a consensus price target of $34.00, indicating a potential upside of 38.16%. Given IRSA Propiedades Comerciales’ higher possible upside, analysts clearly believe IRSA Propiedades Comerciales is more favorable than Brookfield Asset Management.

Risk and Volatility

Brookfield Asset Management has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, IRSA Propiedades Comerciales has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Summary

Brookfield Asset Management beats IRSA Propiedades Comerciales on 9 of the 15 factors compared between the two stocks.

Brookfield Asset Management Company Profile

Brookfield Asset Management Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. Its property business includes owning and managing office properties, developing master planned residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services. Through its subsidiaries, the firm operates hydroelectric power facilities, interconnections and transmission facilities in Northeast North America, and development of wind power in Canada. Through its subsidiaries, it invests in specialty funds including private equity and makes direct investments in real estate, energy, and resource assets. The firm launches and manages equity and fixed income mutual funds. It also manages real estate and hedge funds. The firm invests in equity and fixed income markets across the globe. It was formerly known as Brascan Corp. Brookfield Asset Management Inc. is based in Toronto, Canada with additional offices in Bogota, Colombia, Rio de Janeiro, Brazil, Calgary, Canada, Dubai, United Arab Emirates, Gatineau, Canada, Hong Kong, Hong Kong, London, United Kingdom, Melbourne, Australia, Montreal, Canada, Mumbai, India, New York City, Perth, Australia, Shanghai, China, and Sydney, Australia.

IRSA Propiedades Comerciales Company Profile

IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.

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