Brookfield (NYSE:BN) versus Offerpad Solutions (NYSE:OPAD) Financial Review

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

Insider & Institutional Ownership

39.4% of Offerpad Solutions shares are owned by institutional investors. Comparatively, 61.6% of Brookfield shares are owned by institutional investors. 40.6% of Offerpad Solutions shares are owned by company insiders. Comparatively, 11.0% of Brookfield shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Offerpad Solutions and Brookfield’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Offerpad Solutions	-8.08%	-132.77%	-19.03%
Brookfield	1.11%	3.77%	1.21%

Analyst Recommendations

This is a summary of recent ratings for Offerpad Solutions and Brookfield, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Offerpad Solutions	1	6	0	0	1.86
Brookfield	0	1	8	2	3.09

Offerpad Solutions presently has a consensus price target of $2.41, indicating a potential downside of 39.85%. Brookfield has a consensus price target of $76.70, indicating a potential upside of 11.54%. Given Brookfield’s stronger consensus rating and higher probable upside, analysts clearly believe Brookfield is more favorable than Offerpad Solutions.

Risk and Volatility

Offerpad Solutions has a beta of 2.34, meaning that its stock price is 134% more volatile than the S&P 500. Comparatively, Brookfield has a beta of 1.75, meaning that its stock price is 75% more volatile than the S&P 500.

Valuation & Earnings

This table compares Offerpad Solutions and Brookfield”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Offerpad Solutions	$918.82 million	0.13	-$62.16 million	($2.06)	-1.95
Brookfield	$86.01 billion	1.32	$641.00 million	$0.43	159.91

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

Summary

Brookfield beats Offerpad Solutions on 13 of the 15 factors compared between the two stocks.

About Offerpad Solutions

Offerpad Solutions Inc., together with its subsidiaries, provides technology-enabled solutions for residential real estate market in the United States. It operates iBuying, a real estate solutions platform for on-demand customer that provides home buyers the opportunity to browse and tour homes online. It buys and sells homes through cash offer and listing services. In addition, the company offers renovation services; and ancillary products and services, including mortgage, title insurance, and escrow services, as well as Offerpad Bundle Rewards program that allows customers to receive various discounts when selling and buying a home. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.

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.