Financial Contrast: Brookfield (NYSE:BN) versus American Strategic Investment (NYSE:NYC)

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for American Strategic Investment and Brookfield, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Strategic Investment	1	0	0	0	1.00
Brookfield	0	2	10	1	2.92

Brookfield has a consensus target price of $54.20, indicating a potential upside of 36.69%. Given Brookfield’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield is more favorable than American Strategic Investment.

Volatility and Risk

American Strategic Investment has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Brookfield has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Strategic Investment and Brookfield”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Strategic Investment	$61.57 million	0.36	-$140.59 million	($8.78)	-0.95
Brookfield	$75.10 billion	1.29	$1.31 billion	$0.49	80.93

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

Profitability

This table compares American Strategic Investment and Brookfield’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Strategic Investment	-40.92%	-97.07%	-13.64%
Brookfield	1.74%	3.90%	1.22%

Insider & Institutional Ownership

48.0% of American Strategic Investment shares are held by institutional investors. Comparatively, 61.6% of Brookfield shares are held by institutional investors. 1.7% of American Strategic Investment shares are held by company insiders. Comparatively, 11.0% of Brookfield shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Brookfield beats American Strategic Investment on 15 of the 15 factors compared between the two stocks.

About American Strategic Investment

American Strategic Investment Co. (NYSE: NYC) owns a portfolio of high-quality commercial real estate located within the five boroughs of New York City.

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.