Brookfield vs Macquarie Which Is Superior?

Brookfield Asset Management and Macquarie Group are two prominent companies in the financial services sector with an established reputation in the market. Both companies have seen steady growth in their stock prices over the years, with Brookfield focusing on real estate and infrastructure investments, while Macquarie has a diverse portfolio including banking, financial, and asset management services. Investors looking to diversify their portfolios may consider comparing the performance and potential of these two stocks to make informed investment decisions.

Brookfield or Macquarie?

When comparing Brookfield and Macquarie, 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 and Macquarie.

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 has a dividend yield of 0.66%, while Macquarie has a dividend yield of 2.75%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Brookfield reports a 5-year dividend growth of -10.22% year and a payout ratio of 58.98%. On the other hand, Macquarie reports a 5-year dividend growth of 24.83% year and a payout ratio of 76.63%.

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 P/E ratio at 60.36 and Macquarie's P/E ratio at 25.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Brookfield P/B ratio is 1.43 while Macquarie's P/B ratio is 2.67.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Brookfield has seen a 5-year revenue growth of 0.69%, while Macquarie's is 0.50%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield's ROE at 2.39% and Macquarie's ROE at 10.51%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.53 for Brookfield and $150.09 for Macquarie. Over the past year, Brookfield's prices ranged from $31.52 to $59.23, with a yearly change of 87.91%. Macquarie's prices fluctuated between $101.94 and $165.98, with a yearly change of 62.82%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.