Head-To-Head Analysis: Brookfield Asset Management (NYSE:BAM) & GCM Grosvenor (NASDAQ:GCMG)

Brookfield Asset Management (NYSE:BAM) and GCM Grosvenor (NASDAQ:GCMG) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, risk, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and target prices for Brookfield Asset Management and GCM Grosvenor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	1	5	5	0	2.36
GCM Grosvenor	0	3	2	0	2.40

Brookfield Asset Management presently has a consensus target price of $42.46, suggesting a potential upside of 2.06%. GCM Grosvenor has a consensus target price of $11.60, suggesting a potential upside of 6.72%. Given GCM Grosvenor’s stronger consensus rating and higher probable upside, analysts clearly believe GCM Grosvenor is more favorable than Brookfield Asset Management.

Volatility and Risk

Brookfield Asset Management has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, GCM Grosvenor has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500.

Institutional & Insider Ownership

68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 99.9% of GCM Grosvenor shares are owned by institutional investors. 11.0% of Brookfield Asset Management shares are owned by company insiders. Comparatively, 77.3% of GCM Grosvenor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 3.7%. GCM Grosvenor pays an annual dividend of $0.44 per share and has a dividend yield of 4.0%. 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. GCM Grosvenor pays out -137.5% of its earnings in the form of a dividend. GCM Grosvenor is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Brookfield Asset Management and GCM Grosvenor’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%
GCM Grosvenor	3.55%	-67.14%	13.95%

Earnings and Valuation

This table compares Brookfield Asset Management and GCM Grosvenor’s gross 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	47.33	$451.00 million	$1.08	38.52
GCM Grosvenor	$467.78 million	4.38	$12.77 million	($0.32)	-33.97

Brookfield Asset Management has higher earnings, but lower revenue than GCM Grosvenor. GCM Grosvenor 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 GCM Grosvenor on 9 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 GCM Grosvenor

GCM Grosvenor Inc. is global alternative asset management solutions provider. The firm primarily provides its services to pooled investment vehicles. It also provides its services to investment companies, high net worth individuals, pension and profit sharing plans and state or municipal government entities. The firm invests in equity and alternative investment markets of the United States and internationally. The firm invests in multi-strategy, credit-focused, equity-focused, macro-focused, commodity-focused, and other specialty portfolios. It focuses in hedge fund asset classes, private equity, real estate, and/or infrastructure, credit and absolute return strategies. It also focuses in primary fund investments, secondary fund investments, and co-investments with a focus on buyout, distressed debt, mezzanine, venture capital/growth equity investments. The firm seeks to do seed investments in small, emerging, and diverse private equity firms. The firm seeks to make regionally-focused investments in middle-market buyout. It prefers to invest in aerospace and defense, advanced electronics, information technology, biosciences, and advanced materials. It focuses on Ohio and the Midwest region. The firm employs fundamental and quantitative analysis. GCM Grosvenor Inc. was founded in 1971 and is based in Chicago, Illinois with additional offices in North America, Asia, Australia and Europe.