-
Brookfield Corporation Class A Limited Voting Shares (BN)
-
Brookfield Asset Management Ltd. Class A Limited Voting Shares (BAM)
Q: Hi - you have often commented that you see BN as a better growth stock than BAM, and yet BN doesn't seem to be yielding a lot more growth.... How long do you think until it truly overshadows BAM?
5i Research Answer:
BN is up 51% in the past year, BAM 55%. If we look at consenus estimates, BN is expected to see much much higher earnings growth this year (more than triple) than BAM. BAM is paying the majority of its cash flow out as dividends, and thus simply has less cash available for future growth. It just raised its dividend by 15%. BN's earnings largely depends on its deal flows. We do expect it to be active this year with M&A. We like both, and would continue to view BN as more 'growthy'.