BAM vs. BN: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at BAM and BN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
BAM’s market capitalization stands at 93.06 billion USD, while BN’s is 105.50 billion USD, indicating their market valuations are broadly comparable.
With betas of 1.87 for BAM and 2.19 for BN, both stocks show similar sensitivity to overall market movements.
| Symbol | BAM | BN |
|---|---|---|
| Company Name | Brookfield Asset Management Ltd. | Brookfield Corporation |
| Country | CA | CA |
| Sector | Financial Services | Financial Services |
| Industry | Asset Management | Asset Management |
| CEO | James Bruce Flatt | James Bruce Flatt |
| Price | 57.71 USD | 64.02 USD |
| Market Cap | 93.06 billion USD | 105.50 billion USD |
| Beta | 1.87 | 2.19 |
| Exchange | NYSE | NYSE |
| IPO Date | December 1, 2022 | December 30, 1983 |
| ADR | No | No |
Historical Performance
This chart compares the performance of BAM and BN by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
BAM
22.44%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
In the upper quartile for the Asset Management industry, BAM’s Return on Equity of 22.44% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
BN
1.34%
Asset Management Industry
- Max
- 34.25%
- Q3
- 18.22%
- Median
- 11.24%
- Q1
- 5.81%
- Min
- -5.72%
BN’s Return on Equity of 1.34% is in the lower quartile for the Asset Management industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
Return on Invested Capital
BAM
6.62%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
BAM’s Return on Invested Capital of 6.62% is in line with the norm for the Asset Management industry, reflecting a standard level of efficiency in generating profits from its capital base.
BN
1.44%
Asset Management Industry
- Max
- 42.18%
- Q3
- 20.06%
- Median
- 8.68%
- Q1
- 3.13%
- Min
- -16.42%
BN’s Return on Invested Capital of 1.44% is in the lower quartile for the Asset Management industry. This indicates a less efficient conversion of invested capital into profit compared to most of its competitors.
Net Profit Margin
BAM
65.26%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
A Net Profit Margin of 65.26% places BAM in the upper quartile for the Asset Management industry, signifying strong profitability and more effective cost management than most of its peers.
BN
0.75%
Asset Management Industry
- Max
- 91.66%
- Q3
- 57.81%
- Median
- 29.48%
- Q1
- 15.70%
- Min
- -27.65%
Falling into the lower quartile for the Asset Management industry, BN’s Net Profit Margin of 0.75% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
Operating Profit Margin
BAM
54.57%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
BAM’s Operating Profit Margin of 54.57% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
BN
22.92%
Asset Management Industry
- Max
- 99.76%
- Q3
- 78.28%
- Median
- 34.76%
- Q1
- 21.75%
- Min
- -48.25%
BN’s Operating Profit Margin of 22.92% is around the midpoint for the Asset Management industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | BAM | BN |
|---|---|---|
| Return on Equity (TTM) | 22.44% | 1.34% |
| Return on Assets (TTM) | 6.82% | 0.12% |
| Return on Invested Capital (TTM) | 6.62% | 1.44% |
| Net Profit Margin (TTM) | 65.26% | 0.75% |
| Operating Profit Margin (TTM) | 54.57% | 22.92% |
| Gross Profit Margin (TTM) | 60.27% | 26.32% |
Financial Strength
Current Ratio
BAM
1.68
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
BAM’s Current Ratio of 1.68 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector peers.
BN
1.11
Asset Management Industry
- Max
- 12.44
- Q3
- 5.76
- Median
- 3.04
- Q1
- 1.03
- Min
- 0.01
BN’s Current Ratio of 1.11 aligns with the median group of the Asset Management industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
BAM
0.08
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
Falling into the lower quartile for the Asset Management industry, BAM’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
BN
5.43
Asset Management Industry
- Max
- 2.62
- Q3
- 1.42
- Median
- 0.76
- Q1
- 0.34
- Min
- 0.01
With a Debt-to-Equity Ratio of 5.43, BN operates with exceptionally high leverage compared to the Asset Management industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
BAM
2.89
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
BAM’s Interest Coverage Ratio of 2.89 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
BN
1.10
Asset Management Industry
- Max
- 13.30
- Q3
- 6.30
- Median
- 2.71
- Q1
- 1.00
- Min
- -6.91
BN’s Interest Coverage Ratio of 1.10 is positioned comfortably within the norm for the Asset Management industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | BAM | BN |
|---|---|---|
| Current Ratio (TTM) | 1.68 | 1.11 |
| Quick Ratio (TTM) | 1.68 | 0.96 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 5.43 |
| Debt-to-Asset Ratio (TTM) | 0.04 | 0.50 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.21 | 7.86 |
| Interest Coverage Ratio (TTM) | 2.89 | 1.10 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for BAM and BN. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
BAM
3.49%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
BAM’s Dividend Yield of 3.49% is consistent with its peers in the Asset Management industry, providing a dividend return that is standard for its sector.
BN
0.66%
Asset Management Industry
- Max
- 26.09%
- Q3
- 11.60%
- Median
- 6.37%
- Q1
- 2.75%
- Min
- 0.00%
BN’s Dividend Yield of 0.66% is in the lower quartile for the Asset Management industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
Dividend Payout Ratio
BAM
35.41%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
BAM’s Dividend Payout Ratio of 35.41% is within the typical range for the Asset Management industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
BN
108.21%
Asset Management Industry
- Max
- 1,034.88%
- Q3
- 127.70%
- Median
- 75.15%
- Q1
- 34.21%
- Min
- 0.00%
BN’s Dividend Payout Ratio of 108.21% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
| Symbol | BAM | BN |
|---|---|---|
| Dividend Yield (TTM) | 3.49% | 0.66% |
| Dividend Payout Ratio (TTM) | 35.41% | 108.21% |
Valuation
Price-to-Earnings Ratio
BAM
91.29
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 91.29, BAM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
BN
157.33
Asset Management Industry
- Max
- 38.72
- Q3
- 23.40
- Median
- 11.45
- Q1
- 8.80
- Min
- 1.54
At 157.33, BN’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Asset Management industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
BAM
5.60
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
A Forward PEG Ratio of 5.60 places BAM in the upper quartile for the Asset Management industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
BN
8.25
Asset Management Industry
- Max
- 6.38
- Q3
- 3.23
- Median
- 1.55
- Q1
- 0.89
- Min
- 0.02
BN’s Forward PEG Ratio of 8.25 is exceptionally high for the Asset Management industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
BAM
59.54
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
With a P/S Ratio of 59.54, BAM trades at a valuation that eclipses even the highest in the Asset Management industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
BN
1.30
Asset Management Industry
- Max
- 13.75
- Q3
- 7.92
- Median
- 4.87
- Q1
- 3.51
- Min
- 0.02
In the lower quartile for the Asset Management industry, BN’s P/S Ratio of 1.30 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio
BAM
10.97
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
BN
2.13
Asset Management Industry
- Max
- 5.33
- Q3
- 2.75
- Median
- 1.06
- Q1
- 0.87
- Min
- 0.00
The P/B Ratio is often not a primary valuation metric for the Asset Management industry.
Valuation at a Glance
| Symbol | BAM | BN |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 91.29 | 157.33 |
| Forward PEG Ratio (TTM) | 5.60 | 8.25 |
| Price-to-Sales Ratio (P/S, TTM) | 59.54 | 1.30 |
| Price-to-Book Ratio (P/B, TTM) | 10.97 | 2.13 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -226.91 | -29.38 |
| EV-to-EBITDA (TTM) | 65.34 | 11.41 |
| EV-to-Sales (TTM) | 59.74 | 4.17 |