Brookfield (NYSE:BN) & WeWork (NYSE:WEWKQ) Critical Analysis

Brookfield (NYSE:BNGet Free Report) and WeWork (NYSE:WEWKQGet Free Report) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Insider & Institutional Ownership

58.2% of Brookfield shares are held by institutional investors. 11.0% of Brookfield shares are held by company insiders. Comparatively, 6.0% of WeWork 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.

Volatility & Risk

Brookfield has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500. Comparatively, WeWork has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Brookfield and WeWork’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield $95.92 billion 0.70 $1.13 billion $0.62 66.29
WeWork $3.25 billion 0.00 -$2.03 billion ($75.60) 0.00

Brookfield has higher revenue and earnings than WeWork. WeWork 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 Brookfield and WeWork’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield 1.18% 3.22% 1.05%
WeWork -48.69% N/A -9.59%

Analyst Ratings

This is a breakdown of current ratings and target prices for Brookfield and WeWork, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield 0 2 7 1 2.90
WeWork 0 0 0 0 N/A

Brookfield currently has a consensus target price of $47.35, suggesting a potential upside of 15.94%. Given Brookfield’s higher probable upside, analysts plainly believe Brookfield is more favorable than WeWork.

Summary

Brookfield beats WeWork on 13 of the 13 factors compared between the two stocks.

About Brookfield

(Get Free Report)

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.

About WeWork

(Get Free Report)

WeWork Inc. provides flexible workspace solutions to individuals and organizations worldwide. The company offers workstation, private office, and customized floor solutions; and various amenities and services, such as private phone booths, internet, high-speed business printers and copiers, mail and package handling, front desk services, off-peak building access, common areas, and daily enhanced cleaning solutions. It also provides various value-add services; business and technical service solutions, including professional employer organization and payroll services, remote workforce solutions, human resources benefits, dedicated bandwidth, and IT equipment co-location solutions. In addition, the company offers WeWork All Access, a monthly subscription-based model that allows members to book workspaces, conference rooms, and private offices; WeWork On Demand, which enables users with pay-as-you-go access to book individual workspace or conference rooms at nearby WeWork locations; and WeWork Workplace, a turnkey workspace management solution for landlords, operators, and enterprises. WeWork Inc. was founded in 2010 and is headquartered in New York, New York. On November 6, 2023, WeWork Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the District of New Jersey.

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