Critical Contrast: Brookfield Business Partners L.P. Limited Partnership Units (BBU) & Matrix Service (MTRX)

Brookfield Business Partners L.P. Limited Partnership Units (NYSE: BBU) and Matrix Service (NASDAQ:MTRX) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Earnings & Valuation

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This table compares Brookfield Business Partners L.P. Limited Partnership Units and Matrix Service’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Business Partners L.P. Limited Partnership Units $22.82 billion 0.10 -$58.00 million N/A N/A
Matrix Service $1.20 billion 0.31 -$180,000.00 ($0.01) -1,370.00

Matrix Service has lower revenue, but higher earnings than Brookfield Business Partners L.P. Limited Partnership Units.

Institutional and Insider Ownership

66.0% of Brookfield Business Partners L.P. Limited Partnership Units shares are held by institutional investors. Comparatively, 91.5% of Matrix Service shares are held by institutional investors. 2.5% of Matrix Service shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Brookfield Business Partners L.P. Limited Partnership Units and Matrix Service, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Business Partners L.P. Limited Partnership Units 0 0 5 0 3.00
Matrix Service 0 2 0 0 2.00

Brookfield Business Partners L.P. Limited Partnership Units currently has a consensus target price of $41.40, suggesting a potential upside of 14.97%. Given Brookfield Business Partners L.P. Limited Partnership Units’ stronger consensus rating and higher probable upside, research analysts clearly believe Brookfield Business Partners L.P. Limited Partnership Units is more favorable than Matrix Service.

Risk & Volatility

Brookfield Business Partners L.P. Limited Partnership Units has a beta of 2.1, suggesting that its share price is 110% more volatile than the S&P 500. Comparatively, Matrix Service has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.

Profitability

This table compares Brookfield Business Partners L.P. Limited Partnership Units and Matrix Service’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Business Partners L.P. Limited Partnership Units 0.94% 5.30% 2.10%
Matrix Service -0.59% -1.97% -1.12%

Dividends

Brookfield Business Partners L.P. Limited Partnership Units pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Matrix Service does not pay a dividend.

Summary

Brookfield Business Partners L.P. Limited Partnership Units beats Matrix Service on 9 of the 13 factors compared between the two stocks.

About Brookfield Business Partners L.P. Limited Partnership Units

Brookfield Business Partners L.P. specializes in investments in business services and industrials sector. It seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Asset Management Inc.

About Matrix Service

Matrix Service Company provides engineering, fabrication, infrastructure, construction, and maintenance services primarily to the oil, gas, power, petrochemical, industrial, agricultural, and mining and minerals markets in the United States, Canada, and internationally. The company's Electrical Infrastructure segment offers construction and maintenance services to various power generation facilities, such as combined cycle plants, natural gas fired power stations, and renewable energy installations; and high voltage services comprising the construction of new substations, upgrading existing substations, short-run transmission line installations, distribution upgrades and maintenance, and storm restoration services to investor owned utilities. Its Oil Gas & Chemical segment provides turnaround, plant maintenance, engineering, and construction services for the downstream and midstream petroleum industries; and hydro blasting, hydro excavating, chemical cleaning, and vacuum services, as well as performs work in the petrochemical, natural gas, gas processing and compression, and upstream petroleum markets. The company's Storage Solutions segment constructs crude and refined products aboveground storage tanks; and provides planned and emergency maintenance services. This segment also undertakes work related to liquefied natural gas, liquid nitrogen/liquid oxygen, liquid petroleum tanks, and other specialty vessels, including spheres; and plant work in storage terminals and tank farms, as well as provides geodesic domes, aluminum internal floating roofs, floating suction and skimmer systems, roof drain systems, and floating roof seals. Its Industrial segment constructs and maintains work in the iron and steel, mining and minerals, and agricultural industries, as well as performs work in bulk material handling, fertilizer production facilities, thermal vacuum chambers, and other industrial markets. The company was founded in 1984 and is headquartered in Tulsa, Oklahoma.

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