Brookfield Asset Management (NYSE:BAM – Get Free Report) and Monroe Capital (NASDAQ:MRCC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, analyst recommendations, earnings, valuation and risk.
Profitability
This table compares Brookfield Asset Management and Monroe Capital’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Asset Management | 49.69% | 85.03% | 61.67% |
| Monroe Capital | 20.97% | 12.14% | 4.75% |
Insider and Institutional Ownership
68.4% of Brookfield Asset Management shares are held by institutional investors. 11.0% of Brookfield Asset Management shares are held by company insiders. Comparatively, 3.6% of Monroe Capital shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
Analyst Ratings
This is a summary of recent ratings for Brookfield Asset Management and Monroe Capital, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Asset Management | 2 | 5 | 5 | 0 | 2.25 |
| Monroe Capital | 0 | 0 | 1 | 0 | 3.00 |
Brookfield Asset Management currently has a consensus price target of $53.46, indicating a potential downside of 3.63%. Monroe Capital has a consensus price target of $9.00, indicating a potential upside of 7.02%. Given Monroe Capital’s stronger consensus rating and higher probable upside, analysts clearly believe Monroe Capital is more favorable than Brookfield Asset Management.
Dividends
Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 2.7%. Monroe Capital pays an annual dividend of $1.00 per share and has a dividend yield of 11.9%. Brookfield Asset Management pays out 134.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Monroe Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Earnings & Valuation
This table compares Brookfield Asset Management and Monroe Capital”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Asset Management | $4.06 billion | 6.05 | $451.00 million | $1.13 | 49.09 |
| Monroe Capital | $64.30 million | N/A | $370,000.00 | $0.60 | 14.02 |
Brookfield Asset Management has higher revenue and earnings than Monroe Capital. Monroe Capital 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.
Summary
Brookfield Asset Management beats Monroe Capital on 12 of the 15 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 Monroe Capital
Monroe Capital Corporation is a business development company specializing in customized financing solutions in senior, unitranche and junior secured debt, subordinated debt financing and to a lesser extent, unsecured debt and equity, including equity co-investments in preferred and common stock and warrants. It also provides financing primarily to leveraged buyouts in lower middle-market companies. It focuses to invest in the United States and Canada. The fund prefers to invest in companies with EBITDA between $3 and $35 million. Its makes minority equity investments.
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