Critical Analysis: Brookfield (NYSE:BN) versus Millrose Properties (NYSE:MRP)

Brookfield (NYSE:BN) and Millrose Properties (NYSE:MRP) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Insider and Institutional Ownership

61.6% of Brookfield shares are held by institutional investors. 11.0% of Brookfield shares are held 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.

Dividends

Brookfield pays an annual dividend of $0.36 per share and has a dividend yield of 0.5%. Millrose Properties pays an annual dividend of $2.76 per share and has a dividend yield of 8.0%. Brookfield pays out 83.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield has raised its dividend for 2 consecutive years.

Valuation and Earnings

This table compares Brookfield and Millrose Properties”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$86.01 billion	1.30	$641.00 million	$0.43	157.67
Millrose Properties	N/A	N/A	-$246.22 million	N/A	N/A

Brookfield has higher revenue and earnings than Millrose Properties.

Analyst Recommendations

This is a breakdown of current recommendations for Brookfield and Millrose Properties, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	0	0	8	2	3.20
Millrose Properties	0	0	2	0	3.00

Brookfield presently has a consensus price target of $75.70, suggesting a potential upside of 11.65%. Millrose Properties has a consensus price target of $30.75, suggesting a potential downside of 11.20%. Given Brookfield’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Brookfield is more favorable than Millrose Properties.

Profitability

This table compares Brookfield and Millrose Properties’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.11%	3.77%	1.21%
Millrose Properties	N/A	N/A	N/A

Summary

Brookfield beats Millrose Properties on 12 of the 14 factors compared between the two stocks.

About Brookfield

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. It manages a range of public and private investment products and services for institutional and retail clients. It typically makes investments in sizeable, premier assets across geographies and asset classes. It invests both its own capital as well as capital from other investors. Within private equity and venture capital, it focuses on acquisition, early ventures, control buyouts and financially distressed, buyouts and corporate carve-outs, recapitalizations, convertible, senior and mezzanine financings, operational and capital structure restructuring, strategic re-direction, turnaround, and under-performing midmarket companies. It invests in both public debt and equity markets. It invests in private equity sectors with focus on Business Services include infrastructure, healthcare, road fuel distribution and marketing, construction and real estate; Industrials include manufacturers of automotive batteries, graphite electrodes, returnable plastic packaging, and sanitation management and development; and Residential/ infrastructure services. It targets companies which likely possess underlying real assets, primarily in sectors such as industrial products, building materials, metals, mining, homebuilding, oil and gas, paper and packaging, manufacturing and forest product sectors. It invests globally with focus on North America including Brazil, the United States, Canada; Europe; and Australia; and Asia-Pacific. The firm considers equity investments in the range of $2 million to $500 million. It has a four-year investment period and a 10-year term with two one-year extensions. The firm prefers to take minority stake and majority stake. Brookfield Corporation was founded in 1997 and based in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

About Millrose Properties

Millrose Properties, Inc. is a real estate investment and management company that focuses on acquiring, developing, and managing high-quality commercial properties. They are headquartered in Purchase, New York.