Vinci Partners Investments (NASDAQ:VINP) and Brookfield Asset Management (NYSE:BAM) Critical Analysis

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

Institutional and Insider Ownership

34.1% of Vinci Partners Investments shares are held by institutional investors. Comparatively, 68.4% of Brookfield Asset Management shares are held by institutional investors. 49.3% of Vinci Partners Investments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Vinci Partners Investments pays an annual dividend of $0.64 per share and has a dividend yield of 6.2%. Brookfield Asset Management pays an annual dividend of $1.52 per share and has a dividend yield of 2.6%. Vinci Partners Investments pays out 103.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management pays out 134.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Vinci Partners Investments is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Vinci Partners Investments has a beta of 0.08, meaning that its share price is 92% less volatile than the S&P 500. Comparatively, Brookfield Asset Management has a beta of 1.42, meaning that its share price is 42% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Vinci Partners Investments	37.79%	15.00%	8.52%
Brookfield Asset Management	49.69%	85.03%	61.67%

Valuation & Earnings

This table compares Vinci Partners Investments and Brookfield Asset Management”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vinci Partners Investments	$91.03 million	6.09	$44.19 million	$0.62	16.63
Brookfield Asset Management	$4.06 billion	6.26	$451.00 million	$1.13	50.81

Brookfield Asset Management has higher revenue and earnings than Vinci Partners Investments. Vinci Partners Investments 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.

Analyst Ratings

This is a summary of current ratings and price targets for Vinci Partners Investments and Brookfield Asset Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vinci Partners Investments	0	0	2	0	3.00
Brookfield Asset Management	2	5	5	0	2.25

Vinci Partners Investments currently has a consensus target price of $14.50, suggesting a potential upside of 40.64%. Brookfield Asset Management has a consensus target price of $53.46, suggesting a potential downside of 6.88%. Given Vinci Partners Investments’ stronger consensus rating and higher possible upside, equities analysts clearly believe Vinci Partners Investments is more favorable than Brookfield Asset Management.

Summary

Brookfield Asset Management beats Vinci Partners Investments on 11 of the 16 factors compared between the two stocks.

About Vinci Partners Investments

Vinci Partners Investments Ltd. operates as an asset management firm in Brazil. The company focuses on private markets, liquid strategies, investment products and solutions, and retirement services. It offers private equity, infrastructure, real estate, credit, special situations, equities, hedge funds, and investment products and solutions comprising portfolio and management services. In addition, the company financial and strategic advisory services, focusing on IPO advisory and mergers and acquisition transactions to entrepreneurs, corporate senior management teams, and boards of directors. Vinci Partners Investments Ltd. was founded in 2009 and is based in Rio de Janeiro, Brazil.

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.