Brookfield Asset Management vs Brookfield Renewable

Brookfield Asset Management and Brookfield Renewable are two separate entities under the Brookfield umbrella, each offering investment opportunities in different sectors. Brookfield Asset Management focuses on a variety of industries such as real estate, infrastructure, and private equity, while Brookfield Renewable specializes in renewable energy assets. Both stocks offer investors exposure to sustainable and growing markets, but their financial performance and long-term potential may vary. Understanding their respective business models and strategies is crucial for making informed investment decisions.

Brookfield Asset Management or Brookfield Renewable?

When comparing Brookfield Asset Management and Brookfield Renewable, 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 Brookfield Asset Management and Brookfield Renewable.

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. Brookfield Asset Management has a dividend yield of 3.0%, while Brookfield Renewable has a dividend yield of 4.7%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brookfield Asset Management reports a 5-year dividend growth of 0.00% year and a payout ratio of 44.47%. On the other hand, Brookfield Renewable reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 Brookfield Asset Management P/E ratio at 11.50 and Brookfield Renewable's P/E ratio at 15.05. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brookfield Asset Management P/B ratio is 4.51 while Brookfield Renewable's P/B ratio is 2.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brookfield Asset Management has seen a 5-year revenue growth of -1.00%, while Brookfield Renewable's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield Asset Management's ROE at 30.03% and Brookfield Renewable's ROE at 12.32%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $48.38 for Brookfield Asset Management and $29.78 for Brookfield Renewable. Over the past year, Brookfield Asset Management's prices ranged from $28.35 to $49.39, with a yearly change of 74.22%. Brookfield Renewable's prices fluctuated between $21.35 and $33.17, with a yearly change of 55.36%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.