Boston Omaha (NYSE:BOC) vs. Brookfield (NYSE:BN) Head to Head Analysis

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Brookfield and Boston Omaha, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	0	1	8	2	3.09
Boston Omaha	1	0	1	0	2.00

Brookfield presently has a consensus target price of $76.70, indicating a potential upside of 11.54%. Boston Omaha has a consensus target price of $25.00, indicating a potential upside of 88.30%. Given Boston Omaha’s higher possible upside, analysts plainly believe Boston Omaha is more favorable than Brookfield.

Profitability

This table compares Brookfield and Boston Omaha’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.11%	3.77%	1.21%
Boston Omaha	0.68%	0.14%	0.11%

Institutional and Insider Ownership

61.6% of Brookfield shares are owned by institutional investors. Comparatively, 60.4% of Boston Omaha shares are owned by institutional investors. 11.0% of Brookfield shares are owned by company insiders. Comparatively, 23.2% of Boston Omaha shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Brookfield and Boston Omaha”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$86.01 billion	1.32	$641.00 million	$0.43	159.91
Boston Omaha	$108.28 million	3.86	-$1.29 million	$0.03	442.57

Brookfield has higher revenue and earnings than Boston Omaha. Brookfield is trading at a lower price-to-earnings ratio than Boston Omaha, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Brookfield has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500. Comparatively, Boston Omaha has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.

Summary

Brookfield beats Boston Omaha on 11 of the 15 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 Boston Omaha

Boston Omaha Corporation, together with its subsidiaries, engages in the outdoor billboard advertising business in the southeast United States. It is also involved in the surety insurance and related brokerage, broadband, and asset management businesses. The company was formerly known as REO Plus, Inc. and changed its name to Boston Omaha Corporation in March 2015. Boston Omaha Corporation was incorporated in 2009 and is headquartered in Omaha, Nebraska.