Value Line (NASDAQ:VALU) and Brookfield Asset Management (NYSE:BAM) Critical Contrast

Value Line (NASDAQ:VALU) and Brookfield Asset Management (NYSE:BAM) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, profitability, valuation and institutional ownership.

Dividends

Value Line pays an annual dividend of $1.20 per share and has a dividend yield of 2.8%. Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 3.4%. Value Line pays out 61.9% of its earnings in the form of a dividend. Brookfield Asset Management pays out 140.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Value Line has raised its dividend for 10 consecutive years.

Institutional & Insider Ownership

6.3% of Value Line shares are held by institutional investors. Comparatively, 68.4% of Brookfield Asset Management shares are held by institutional investors. 0.0% of Value Line shares are held by company insiders. Comparatively, 11.0% of Brookfield Asset Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Value Line and Brookfield Asset Management”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Value Line	$37.49 million	10.78	$19.02 million	$1.94	22.12
Brookfield Asset Management	$4.06 billion	4.90	$451.00 million	$1.08	41.53

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Value Line	50.73%	21.65%	14.27%
Brookfield Asset Management	51.29%	92.37%	65.35%

Risk and Volatility

Value Line has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Value Line and Brookfield Asset Management, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Value Line	0	0	0	0	N/A
Brookfield Asset Management	2	5	5	0	2.25

Brookfield Asset Management has a consensus target price of $43.81, suggesting a potential downside of 2.32%. Given Brookfield Asset Management’s higher probable upside, analysts plainly believe Brookfield Asset Management is more favorable than Value Line.

Summary

Brookfield Asset Management beats Value Line on 12 of the 16 factors compared between the two stocks.

About Value Line

Value Line, Inc. produces and sells investment periodicals and related publications. Its investment periodicals and related publications cover a range of investments, including stocks, mutual funds, exchange traded funds (ETFs), and options. The company's research services include The Value Line Investment Survey, The Value Line Investment Survey – Small and Mid-Cap, The Value Line 600, and The Value Line Fund Advisor Plus that provide statistical and text coverage of various investment securities, with an emphasis placed on its proprietary research, analysis, and statistical ranks. It also provides niche newsletters comprising Value Line Select: Dividend Income & Growth, Value Line Select: ETFs, The Value Line Special Situations Service, The Value Line M&A Service, The Value Line Climate Change Investing Service, and The Value Line Information You Should Know Wealth Newsletter that offer information on a less comprehensive basis for securities that are of particular interest to subscribers; digital versions of its products through its Website, www.valueline.com; The Value Line Research Center online platform; and investment analysis software, such as The Value Line Investment Analyzer and The New Value Line ETFs Service. In addition, the company offers current and historical financial databases comprising fundamental DataFile, estimates and projections, and mutual funds; and copyright products, which include unit investment trusts, variable annuities, managed accounts, and ETFs. Further, it operates as publishing unit for the investment related periodical publications and copyrights; places advertising on behalf of the company's publications; and distributes print publications. It serves individual and professional investors, as well as institutions, including municipal and university libraries, and investment firms. The company was founded in 1931 and is headquartered in New York, New York. Value Line, Inc. is a subsidiary of Arnold Bernhard & Co., Inc.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.