Contrasting IRSA Propiedades Comerciales (IRCP) and Brookfield Asset Management (BAM)

IRSA Propiedades Comerciales (NASDAQ:IRCP) and Brookfield Asset Management (NYSE:BAM) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, earnings, institutional ownership, dividends, valuation, analyst recommendations and risk.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for IRSA Propiedades Comerciales and Brookfield Asset Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IRSA Propiedades Comerciales 0 1 1 0 2.50
Brookfield Asset Management 0 0 5 0 3.00

IRSA Propiedades Comerciales presently has a consensus target price of $34.00, indicating a potential upside of 39.06%. Brookfield Asset Management has a consensus target price of $51.70, indicating a potential upside of 29.54%. Given IRSA Propiedades Comerciales’ higher probable upside, analysts plainly believe IRSA Propiedades Comerciales is more favorable than Brookfield Asset Management.

Profitability

This table compares IRSA Propiedades Comerciales and Brookfield Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IRSA Propiedades Comerciales 333.56% 52.00% 29.72%
Brookfield Asset Management 5.49% 3.74% 1.46%

Insider & Institutional Ownership

6.7% of IRSA Propiedades Comerciales shares are owned by institutional investors. Comparatively, 60.4% of Brookfield Asset Management shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

IRSA Propiedades Comerciales pays an annual dividend of $1.21 per share and has a dividend yield of 4.9%. Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. IRSA Propiedades Comerciales pays out 5.8% of its earnings in the form of a dividend. Brookfield Asset Management has raised its dividend for 6 consecutive years.

Earnings and Valuation

This table compares IRSA Propiedades Comerciales and Brookfield Asset Management’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IRSA Propiedades Comerciales $183.91 million 4.19 $774.62 million $20.83 1.17
Brookfield Asset Management $40.79 billion 0.97 $1.46 billion N/A N/A

Brookfield Asset Management has higher revenue and earnings than IRSA Propiedades Comerciales.

Volatility & Risk

IRSA Propiedades Comerciales has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.

Summary

Brookfield Asset Management beats IRSA Propiedades Comerciales on 9 of the 15 factors compared between the two stocks.

About IRSA Propiedades Comerciales

IRSA Propiedades Comerciales S.A. operates as an investment arm of IRSA Inversiones y Representaciones S.A. Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. As of June 30, 2007, it owned and operated ten shopping centers covering a total of 264,995 square meters in Argentina, including six in the Buenos Aires metropolitan area and four in the provinces of Cordoba, Mendoza, Salta, and Santa Fe; and a condominium called Torres de Abasto located in front of the Abasto Shopping Center in Buenos Aires. The company offers leases to retail tenants in its ten shopping centers; administration and maintenance of common areas; administration of contributions made by tenants to finance promotional efforts for the shopping centers; and parking lot services for visitors. The company also offers credit card consumer finance service, through the issuance of its Tarjeta Shopping and Tarjeta Shopping Metroshop credit cards, for consumers at shopping centers, hypermarkets, and street stores. It also engages in the development and sale of residential properties, and acquisition and sale of undeveloped parcels of land for future development. In addition, it engages in the development of condominiums associated with its shopping centers. The company was founded in 1889 and is headquartered in Buenos Aires, Argentina.

About Brookfield Asset Management

Brookfield Asset Management Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. Its property business includes owning and managing office properties, developing master planned residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services. Through its subsidiaries, the firm operates hydroelectric power facilities, interconnections and transmission facilities in Northeast North America, and development of wind power in Canada. Through its subsidiaries, it invests in specialty funds including private equity and makes direct investments in real estate, energy, and resource assets. The firm launches and manages equity and fixed income mutual funds. It also manages real estate and hedge funds. The firm invests in equity and fixed income markets across the globe. It was formerly known as Brascan Corp. Brookfield Asset Management Inc. is based in Toronto, Canada with additional offices in Bogota, Colombia, Rio de Janeiro, Brazil, Calgary, Canada, Dubai, United Arab Emirates, Gatineau, Canada, Hong Kong, Hong Kong, London, United Kingdom, Melbourne, Australia, Montreal, Canada, Mumbai, India, New York City, Perth, Australia, Shanghai, China, and Sydney, Australia.

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