Brookfield Business Partners LP (BBU)vsRoyal Bank of Canada (RY)
BBU
Brookfield Business Partners LP
$32.62
+6.60%
INDUSTRIALS · Cap: $2.71B
RY
Royal Bank of Canada
$162.50
+0.24%
FINANCIAL SERVICES · Cap: $225.89B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 131% more annual revenue ($63.42B vs $27.46B). RY leads profitability with a 33.1% profit margin vs -0.1%. RY earns a higher WallStSmart Score of 68/100 (B-).
BBU
Buy52
out of 100
Grade: C-
RY
Strong Buy68
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for BBU.
Margin of Safety
+44.3%
Fair Value
$306.13
Current Price
$162.50
$143.63 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 80.0% YoY
Reasonable price relative to book value
Mega-cap, among the largest globally
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 46.2%
Generating 37.3B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
ROE of 2.4% — below average capital efficiency
Weak financial health signals
Revenue declined 4.5%
Currently unprofitable
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : BBU
The strongest argument for BBU centers on EPS Growth, Price/Book.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.
Bear Case : BBU
The primary concerns for BBU are Return on Equity, Piotroski F-Score, Revenue Growth. Debt-to-equity of 19.07 is elevated, increasing financial risk.
Bear Case : RY
The primary concerns for RY are PEG Ratio.
Key Dynamics to Monitor
BBU profiles as a turnaround stock while RY is a mature play — different risk/reward profiles.
BBU carries more volatility with a beta of 1.32 — expect wider price swings.
RY is growing revenue faster at 7.5% — sustainability is the question.
RY generates stronger free cash flow (37.3B), providing more financial flexibility.
Bottom Line
RY scores higher overall (68/100 vs 52/100), backed by strong 33.1% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Brookfield Business Partners LP
INDUSTRIALS · CONGLOMERATES · USA
Brookfield Business Partners LP (BBU) is a leading global alternative asset manager that focuses on acquiring, operating, and enhancing a diversified portfolio of high-quality, cash-generating businesses. Capitalizing on the robust resources and expertise of its parent company, Brookfield Asset Management, BBU strategically invests in sectors such as industrials, utilities, and consumer products, employing a disciplined approach to operational improvements. With an emphasis on delivering sustainable cash distributions and capital appreciation, BBU is well-equipped to capitalize on growth opportunities, positioning itself to generate superior returns for its investors over the long term.
Visit Website →Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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