Brookfield Asset Management (NYSE: BAM) and Piedmont Office Realty Trust (NYSE:PDM) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.
Insider & Institutional Ownership
55.3% of Brookfield Asset Management shares are held by institutional investors. Comparatively, 88.2% of Piedmont Office Realty Trust shares are held by institutional investors. 0.8% of Piedmont Office Realty Trust shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Piedmont Office Realty Trust pays an annual dividend of $0.84 per share and has a dividend yield of 4.8%. Piedmont Office Realty Trust pays out 48.0% of its earnings in the form of a dividend. Brookfield Asset Management has raised its dividend for 6 consecutive years and Piedmont Office Realty Trust has raised its dividend for 4 consecutive years.
Volatility & Risk
Brookfield Asset Management has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Piedmont Office Realty Trust has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
This table compares Brookfield Asset Management and Piedmont Office Realty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brookfield Asset Management||3.58%||2.02%||0.81%|
|Piedmont Office Realty Trust||23.26%||1.16%||0.58%|
Valuation and Earnings
This table compares Brookfield Asset Management and Piedmont Office Realty Trust’s 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||0.92||$1.46 billion||N/A||N/A|
|Piedmont Office Realty Trust||$574.17 million||4.14||$133.56 million||$1.75||10.05|
Brookfield Asset Management has higher revenue and earnings than Piedmont Office Realty Trust.
This is a summary of recent ratings and recommmendations for Brookfield Asset Management and Piedmont Office Realty Trust, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brookfield Asset Management||0||0||6||0||3.00|
|Piedmont Office Realty Trust||1||1||1||0||2.00|
Brookfield Asset Management currently has a consensus price target of $48.42, suggesting a potential upside of 24.15%. Piedmont Office Realty Trust has a consensus price target of $20.67, suggesting a potential upside of 17.49%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Asset Management is more favorable than Piedmont Office Realty Trust.
Brookfield Asset Management beats Piedmont Office Realty Trust on 11 of the 16 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.
Piedmont Office Realty Trust Company Profile
Piedmont Office Realty Trust, Inc. (NYSE: PDM) is an owner, manager, developer, and operator of high-quality, Class A office properties in select submarkets located primarily within eight major U.S. office markets. Its geographically-diversified, almost $5 billion portfolio is currently comprised of approximately 17 million square feet. The Company is a fully-integrated, self-managed real estate investment trust (REIT) with local management offices in each of its major markets and is investment-grade rated by Standard & Poor's (BBB) and Moody's (Baa2). For more information, see www.piedmontreit.com.
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