Moelis & Company (NYSE:MC) vs. Brookfield Asset Management (NYSE:BAM) Head to Head Analysis

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

Institutional and Insider Ownership

68.4% of Brookfield Asset Management shares are held by institutional investors. Comparatively, 91.5% of Moelis & Company shares are held by institutional investors. 11.0% of Brookfield Asset Management shares are held by insiders. Comparatively, 6.4% of Moelis & Company shares are held by insiders. 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Brookfield Asset Management and Moelis & Company, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	1	5	5	0	2.36
Moelis & Company	2	4	0	0	1.67

Brookfield Asset Management currently has a consensus price target of $42.46, suggesting a potential upside of 5.85%. Moelis & Company has a consensus price target of $56.00, suggesting a potential downside of 14.39%. Given Brookfield Asset Management’s stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Asset Management is more favorable than Moelis & Company.

Dividends

Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 3.8%. Moelis & Company pays an annual dividend of $2.40 per share and has a dividend yield of 3.7%. Brookfield Asset Management pays out 140.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Moelis & Company pays out -1,263.2% of its earnings in the form of a dividend.

Profitability

This table compares Brookfield Asset Management and Moelis & Company’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Asset Management	49.36%	98.98%	67.65%
Moelis & Company	1.38%	4.38%	1.53%

Volatility & Risk

Brookfield Asset Management has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Moelis & Company has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Brookfield Asset Management and Moelis & Company’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Asset Management	$390.00 million	45.64	$451.00 million	$1.08	37.14
Moelis & Company	$969.13 million	5.05	-$24.70 million	($0.19)	-344.26

Brookfield Asset Management has higher earnings, but lower revenue than Moelis & Company. Moelis & Company is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.

Summary

Brookfield Asset Management beats Moelis & Company on 13 of the 16 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

About Moelis & Company

Moelis & Company operates as an investment banking advisory firm. It offers advisory services in the areas of mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters, as well as strategic, capital structure, and private funds advisory. The company offers its services to public multinational corporations, middle market private companies, financial sponsors, entrepreneurs, governments, and sovereign wealth funds. It operates in North and South America, Europe, the Middle East, Asia, and Australia. The company was founded in 2007 and is headquartered in New York, New York.