Brookfield vs RioCan Real Estate Investment Trust Which Is More Lucrative?

Brookfield and RioCan Real Estate Investment Trust are two prominent players in the real estate sector, known for their large portfolios of commercial properties. While both companies offer investors exposure to the real estate market, they have distinct approaches to property management and investment strategies. Brookfield is known for its global presence and diversified holdings, while RioCan focuses more on retail and residential properties in Canada. Understanding the strengths and weaknesses of each company is crucial for investors looking to add real estate stocks to their portfolio.

Brookfield or RioCan Real Estate Investment Trust?

When comparing Brookfield and RioCan Real Estate Investment Trust, 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 RioCan Real Estate Investment Trust.

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 0.41%, while RioCan Real Estate Investment Trust has a dividend yield of 6.18%. 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 71.80%. On the other hand, RioCan Real Estate Investment Trust reports a 5-year dividend growth of -4.76% year and a payout ratio of 143.27%.

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 98.43 and RioCan Real Estate Investment Trust's P/E ratio at 24.40. 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 1.92 while RioCan Real Estate Investment Trust's P/B ratio is 0.75.

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 0.59%, while RioCan Real Estate Investment Trust's is 0.07%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Brookfield's ROE at 2.00% and RioCan Real Estate Investment Trust's ROE at 3.07%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $58.99 for Brookfield and $13.02 for RioCan Real Estate Investment Trust. Over the past year, Brookfield's prices ranged from $37.77 to $62.44, with a yearly change of 65.32%. RioCan Real Estate Investment Trust's prices fluctuated between $11.43 and $15.40, with a yearly change of 34.73%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.