Comparing Foxtons Group (OTCMKTS:FXTGY) and Brookfield (NYSE:BN)

Brookfield (NYSE:BN) and Foxtons Group (OTCMKTS:FXTGY) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Dividends

Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Foxtons Group pays an annual dividend of $0.01 per share and has a dividend yield of 1.0%. Brookfield pays out 57.1% of its earnings in the form of a dividend. Brookfield has raised its dividend for 2 consecutive years.

Profitability

This table compares Brookfield and Foxtons Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield	1.74%	3.90%	1.22%
Foxtons Group	N/A	N/A	N/A

Analyst Ratings

This is a summary of recent ratings and price targets for Brookfield and Foxtons Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield	0	2	10	1	2.92
Foxtons Group	0	0	0	0	0.00

Brookfield presently has a consensus target price of $54.20, suggesting a potential upside of 36.69%. Given Brookfield’s stronger consensus rating and higher possible upside, equities analysts clearly believe Brookfield is more favorable than Foxtons Group.

Insider & Institutional Ownership

61.6% of Brookfield shares are held by institutional investors. 11.0% of Brookfield 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.

Earnings and Valuation

This table compares Brookfield and Foxtons Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield	$75.10 billion	1.29	$1.31 billion	$0.49	80.93
Foxtons Group	$227.49 million	0.66	$16.94 million	N/A	N/A

Brookfield has higher revenue and earnings than Foxtons Group.

Volatility and Risk

Brookfield has a beta of 1.58, indicating that its stock price is 58% more volatile than the S&P 500. Comparatively, Foxtons Group has a beta of -0.44, indicating that its stock price is 144% less volatile than the S&P 500.

Summary

Brookfield beats Foxtons Group on 14 of the 16 factors compared between the two stocks.

About Brookfield

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 Foxtons Group

Foxtons Group plc, an estate agency, provides services to the residential property market in the United Kingdom. The company operates through three segments: Lettings, Sales, and Financial Services. The Lettings segment engages in letting and management of residential properties. The Sales segment sells residential properties. The Financial Services segment offers mortgages and related products. Foxtons Group plc was founded in 1981 and is headquartered in London, the United Kingdom.