Critical Comparison: Brookfield Asset Management (BAM) versus Forest City Realty Trust (FCE.A)

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Forest City Realty Trust (NYSE: BAM) and Brookfield Asset Management (NYSE:BAM) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, earnings, institutional ownership, analyst recommendations and dividends.

Insider & Institutional Ownership

87.4% of Forest City Realty Trust shares are held by institutional investors. Comparatively, 61.0% of Brookfield Asset Management shares are held by institutional investors. 9.2% of Forest City Realty Trust shares are held 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.

Dividends

Forest City Realty Trust pays an annual dividend of $0.72 per share and has a dividend yield of 2.9%. Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Brookfield Asset Management has increased its dividend for 6 consecutive years.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Forest City Realty Trust and Brookfield Asset Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forest City Realty Trust 0 0 1 0 3.00
Brookfield Asset Management 0 0 5 0 3.00

Forest City Realty Trust presently has a consensus price target of $25.00, indicating a potential downside of 0.24%. Brookfield Asset Management has a consensus price target of $49.80, indicating a potential upside of 13.98%. Given Brookfield Asset Management’s higher possible upside, analysts clearly believe Brookfield Asset Management is more favorable than Forest City Realty Trust.

Earnings & Valuation

This table compares Forest City Realty Trust and Brookfield Asset Management’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forest City Realty Trust $911.90 million 7.34 $206.03 million N/A N/A
Brookfield Asset Management $40.79 billion 1.06 $1.46 billion N/A N/A

Brookfield Asset Management has higher revenue and earnings than Forest City Realty Trust.

Profitability

This table compares Forest City Realty Trust and Brookfield Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forest City Realty Trust 40.28% N/A N/A
Brookfield Asset Management 5.49% 3.74% 1.46%

Risk & Volatility

Forest City Realty Trust has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

About Forest City Realty Trust

Forest City Realty Trust, Inc. is engaged in operation, development, management and acquisition of office, retail and apartment real estate and land throughout the United States. The Company’s segments include Office, Retail, Apartments, Development, Corporate and Other. Its Office segment owns, acquires and operates office and life science buildings. Its Retail segment owns, acquires and operates regional malls, specialty/urban retail centers and amenity retail within its mixed-use projects. Its Apartments segment owns, acquires and operates rental properties, including upscale and middle-market apartments, adaptive reuse developments and subsidized senior housing. Its Development segment represents the development and construction of office and life science buildings, regional malls, specialty/urban retail centers, amenity retail, apartments, condominiums and mixed-use projects.

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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