BlackRock vs Brookfield Which Performs Better?

BlackRock and Brookfield are two major players in the investment industry, known for their expertise in different sectors. BlackRock, the world's largest asset manager, specializes in providing a wide range of investment products and services to individual and institutional investors. On the other hand, Brookfield is a global alternative asset manager, focusing on real estate, infrastructure, renewable energy, and private equity investments. Both companies have strong track records of delivering returns to their investors, making them attractive options for those looking to diversify their portfolios.

BlackRock or Brookfield?

When comparing BlackRock and Brookfield, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between BlackRock and Brookfield.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. BlackRock has a dividend yield of 1.93%, while Brookfield has a dividend yield of 0.41%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. BlackRock reports a 5-year dividend growth of 10.72% year and a payout ratio of 50.26%. On the other hand, Brookfield reports a 5-year dividend growth of -10.22% year and a payout ratio of 71.80%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with BlackRock P/E ratio at 25.74 and Brookfield's P/E ratio at 97.49. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. BlackRock P/B ratio is 3.80 while Brookfield's P/B ratio is 1.90.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, BlackRock has seen a 5-year revenue growth of 0.36%, while Brookfield's is 0.59%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with BlackRock's ROE at 15.15% and Brookfield's ROE at 2.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $1052.33 for BlackRock and $58.63 for Brookfield. Over the past year, BlackRock's prices ranged from $745.55 to $1082.45, with a yearly change of 45.19%. Brookfield's prices fluctuated between $37.77 and $62.44, with a yearly change of 65.32%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.