Itex (OTCMKTS:ITEX) versus Brookfield Business Partners (NYSE:BBU) Head-To-Head Analysis

Itex (OTCMKTS:ITEX) and Brookfield Business Partners (NYSE:BBU) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.

Profitability

This table compares Itex and Brookfield Business Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Itex	N/A	N/A	N/A
Brookfield Business Partners	1.41%	2.67%	0.51%

Valuation & Earnings

This table compares Itex and Brookfield Business Partners”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Itex	$5.44 million	0.87	$500,000.00	N/A	N/A
Brookfield Business Partners	$27.46 billion	0.10	-$26.00 million	($0.26)	-118.73

Itex has higher earnings, but lower revenue than Brookfield Business Partners.

Dividends

Itex pays an annual dividend of $0.40 per share and has a dividend yield of 14.0%. Brookfield Business Partners pays an annual dividend of $0.25 per share and has a dividend yield of 0.8%. Brookfield Business Partners pays out -96.2% of its earnings in the form of a dividend.

Risk and Volatility

Itex has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500. Comparatively, Brookfield Business Partners has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

85.0% of Brookfield Business Partners shares are held by institutional investors. 32.0% of Itex shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Itex and Brookfield Business Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Itex	0	0	0	0	0.00
Brookfield Business Partners	2	0	6	0	2.50

Brookfield Business Partners has a consensus price target of $43.00, indicating a potential upside of 39.29%. Given Brookfield Business Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Brookfield Business Partners is more favorable than Itex.

Summary

Brookfield Business Partners beats Itex on 10 of the 14 factors compared between the two stocks.

About Itex

ITEX Corporation operates a marketplace in which products and services are exchanged by marketplace members without exchanging cash in the United States. The company’s marketplace provides a forum for members to purchase from and sell their products and services to other members using ITEX dollars instead of United States dollars. It also administers the marketplace, as well as provides record-keeping and payment transaction processing services. In addition, the company services its member businesses through its independent licensed brokers and franchise network. ITEX Corporation was founded in 1982 and is headquartered in Bellevue, Washington.

About Brookfield Business Partners

Brookfield Business Partners L.P. is a private equity firm specializing in acquisition. The firm typically invests in business services, infrastructure services, construction, energy, and industrials sector. It prefers to take majority stake in companies. The firm seeks returns of at least 15% on its investments. Brookfield Business Partners L.P. was founded in 2016 and is based in Hamilton, Bermuda. Brookfield Business Partners L.P. operates as a subsidiary of Brookfield Corporation.