Head to Head Review: Brookfield (NYSE:BN) vs. Ridgepost Capital (NYSE:RPC)

Ridgepost Capital (NYSE:RPC) and Brookfield (NYSE:BN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Valuation & Earnings

This table compares Ridgepost Capital and Brookfield”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ridgepost Capital	$297.35 million	3.41	$19.50 million	$0.25	36.84
Brookfield	$75.10 billion	1.28	$1.31 billion	$0.55	71.40

Brookfield has higher revenue and earnings than Ridgepost Capital. Ridgepost Capital is trading at a lower price-to-earnings ratio than Brookfield, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Ridgepost Capital has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Brookfield has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.

Profitability

This table compares Ridgepost Capital and Brookfield’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ridgepost Capital	9.03%	21.02%	9.21%
Brookfield	1.85%	3.93%	1.22%

Dividends

Ridgepost Capital pays an annual dividend of $0.16 per share and has a dividend yield of 1.7%. Brookfield pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. Ridgepost Capital pays out 64.0% of its earnings in the form of a dividend. Brookfield pays out 50.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Brookfield has raised its dividend for 2 consecutive years.

Analyst Ratings

This is a summary of current ratings and price targets for Ridgepost Capital and Brookfield, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ridgepost Capital	0	2	2	0	2.50
Brookfield	1	1	10	1	2.85

Ridgepost Capital currently has a consensus target price of $13.00, suggesting a potential upside of 41.15%. Brookfield has a consensus target price of $57.40, suggesting a potential upside of 46.17%. Given Brookfield’s stronger consensus rating and higher possible upside, analysts clearly believe Brookfield is more favorable than Ridgepost Capital.

Insider and Institutional Ownership

48.0% of Ridgepost Capital shares are held by institutional investors. Comparatively, 61.6% of Brookfield shares are held by institutional investors. 11.8% of Ridgepost Capital shares are held by insiders. Comparatively, 11.0% of Brookfield shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Brookfield beats Ridgepost Capital on 12 of the 18 factors compared between the two stocks.

About Ridgepost Capital

P10, Inc., together with its subsidiaries, operates as a multi-asset class private market solutions provider in the alternative asset management industry in the United States. The company offers private equity, venture capital, private credit, impact investing, and private credit services, as well as primary fund of funds, secondary investment, and direct and co-investments services. It also provides tax credit transaction and consulting services. The company was founded in 1992 and is headquartered in Dallas, Texas.

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.