Analyzing Brookfield Asset Management (BAM) and Sampo (SAXPY)

Brookfield Asset Management (NYSE: BAM) and Sampo (OTCMKTS:SAXPY) are both large-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Profitability

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This table compares Brookfield Asset Management and Sampo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brookfield Asset Management 3.58% 2.05% 0.81%
Sampo N/A 18.01% 5.20%

Earnings and Valuation

This table compares Brookfield Asset Management and Sampo’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brookfield Asset Management $40.79 billion 0.92 $1.46 billion N/A N/A
Sampo $7.82 billion 4.08 $2.50 billion N/A N/A

Sampo has lower revenue, but higher earnings than Brookfield Asset Management.

Analyst Recommendations

This is a breakdown of current recommendations for Brookfield Asset Management and Sampo, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brookfield Asset Management 0 0 6 0 3.00
Sampo 1 0 1 0 2.00

Brookfield Asset Management currently has a consensus price target of $48.42, suggesting a potential upside of 23.01%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, analysts plainly believe Brookfield Asset Management is more favorable than Sampo.

Institutional and Insider Ownership

55.5% of Brookfield Asset Management shares are held by institutional investors. Comparatively, 0.1% of Sampo shares are held by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Brookfield Asset Management has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Sampo has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500.

Dividends

Brookfield Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Sampo pays an annual dividend of $1.01 per share and has a dividend yield of 3.5%. Brookfield Asset Management has increased its dividend for 6 consecutive years.

Summary

Brookfield Asset Management beats Sampo on 8 of the 13 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm invests in the property, power, and infrastructure sectors. Its property business includes owning and managing office properties, developing master planned residential communities, and offering clients bridge and mezzanine lending, alternative assets funds, and financial and advisory services. Through its subsidiaries, the firm operates hydroelectric power facilities, interconnections and transmission facilities in Northeast North America, and development of wind power in Canada. Through its subsidiaries, it invests in specialty funds including private equity and makes direct investments in real estate, energy, and resource assets. The firm launches and manages equity and fixed income mutual funds. It also manages real estate and hedge funds. The firm invests in equity and fixed income markets across the globe. It was formerly known as Brascan Corp. Brookfield Asset Management Inc. is based in Toronto, Canada with additional offices in Bogota, Colombia, Rio de Janeiro, Brazil, Calgary, Canada, Dubai, United Arab Emirates, Gatineau, Canada, Hong Kong, Hong Kong, London, United Kingdom, Melbourne, Australia, Montreal, Canada, Mumbai, India, New York City, Perth, Australia, Shanghai, China, and Sydney, Australia.

About Sampo

Sampo Oyj, through its subsidiaries, provides property and casualty (P&C), and life insurance products and services in Finland, Sweden, Norway, Denmark, and the Baltic countries. The company’s P&C Insurance segment offers insurance products, including household, homeowner, motor, and accident insurance, as well as various supplementary insurances, such as travel, boat, forest, and livestock insurance to private customers; commercial insurance products, which comprise property, liability, casualty, and cargo insurance, to companies; and P&C insurances to private and corporate customers. Its Life Insurance segment provides wealth management, rewards, and risk insurance for private and corporate customers, as well as unit-linked insurance and group pension insurance products. Sampo Oyj was founded in 1909 and is based in Helsinki, Finland.

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