Garrison Capital (GARS) & Brookfield Asset Management (BAM) Head-To-Head Analysis

Brookfield Asset Management (NYSE: BAM) and Garrison Capital (NASDAQ:GARS) are both financials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Dividends

Brookfield Asset Management pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. Garrison Capital pays an annual dividend of $1.12 per share and has a dividend yield of 13.2%. Brookfield Asset Management pays out 43.8% of its earnings in the form of a dividend. Brookfield Asset Management has increased its dividend for 5 consecutive years.

Risk & Volatility

Brookfield Asset Management has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, Garrison Capital has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Insider and Institutional Ownership

55.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 22.0% of Garrison Capital shares are owned by institutional investors. 5.8% of Garrison Capital shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Brookfield Asset Management and Garrison Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Asset Management 10.14% 3.40% 2.23%
Garrison Capital -0.38% 8.33% 3.97%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Brookfield Asset Management and Garrison Capital, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Asset Management 0 0 6 0 3.00
Garrison Capital 0 5 1 0 2.17

Brookfield Asset Management presently has a consensus target price of $48.17, indicating a potential upside of 12.99%. Garrison Capital has a consensus target price of $10.17, indicating a potential upside of 19.89%. Given Garrison Capital’s higher possible upside, analysts clearly believe Garrison Capital is more favorable than Brookfield Asset Management.

Valuation and Earnings

This table compares Brookfield Asset Management and Garrison Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Brookfield Asset Management $30.02 billion 1.36 $8.47 billion $1.28 33.30
Garrison Capital N/A N/A N/A N/A N/A

Brookfield Asset Management has higher revenue and earnings than Garrison Capital.

Summary

Brookfield Asset Management beats Garrison Capital on 8 of the 14 factors compared between the two stocks.

Brookfield Asset Management Company Profile

Brookfield Asset Management Inc. is an alternative asset manager. The Company operates in eight segments. The Asset Management segment manages its listed partnerships, private funds and public markets on behalf of its clients. The Property segment includes the ownership, operation and development of office, retail and other properties. The Renewable power segment operates and develops hydroelectric, wind power and other generating facilities. The Infrastructure segment includes the ownership, operation and development of utilities and agricultural operations, among others. The Residential development segment includes homebuilding, condominium development and land development. The Service activities segment includes construction management and contracting services and property services. The Private equity segment includes the investments and operations overseen by its private equity group. The Corporate activities segment includes the allocation of capital to its operating platforms.

Garrison Capital Company Profile

Garrison Capital Inc. is a managed, closed-end, non-diversified management investment company. The Company’s investment objective is to generate current income and capital appreciation by making investments primarily in debt securities and loans of the United States-based middle-market companies, which it defines as those having annual earnings before interest, taxes and depreciation, or EBITDA, of certain amount. It invests or provides direct lending in first lien senior secured loans, second lien senior secured loans, one-stop senior secured loans or unitranche loans, subordinated or mezzanine loans, unsecured consumer loans and to a lesser extent, selected equity co-investments in middle-market companies. The Company intends to generate risk-adjusted net returns by assembling a portfolio of investments. The Company’s investment advisor is Garrison Capital Advisers LLC.

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