WallStSmart

Brookfield Corp (BN)vsProspect Capital Corporation (PSEC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Brookfield Corp generates 12519% more annual revenue ($80.69B vs $639.45M). PSEC leads profitability with a 24.0% profit margin vs 1.8%. BN appears more attractively valued with a PEG of 1.27. BN earns a higher WallStSmart Score of 63/100 (C+).

BN

Buy

63

out of 100

Grade: C+

Growth: 6.0Profit: 5.5Value: 4.3Quality: 3.5
Piotroski: 5/9Altman Z: 0.64

PSEC

Buy

56

out of 100

Grade: C

Growth: 4.7Profit: 6.5Value: 4.3Quality: 4.8
Piotroski: 3/9

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BN4 strengths · Avg: 8.3/10
Market CapQuality
$85.32B9/10

Large-cap with strong market position

Price/BookValuation
2.0x8/10

Reasonable price relative to book value

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

EPS GrowthGrowth
40.3%8/10

Earnings expanding 40.3% YoY

PSEC3 strengths · Avg: 9.7/10
Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Operating MarginProfitability
70.3%10/10

Strong operational efficiency at 70.3%

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

Areas to Watch

BN4 concerns · Avg: 2.5/10
Return on EquityProfitability
3.0%3/10

ROE of 3.0% — below average capital efficiency

Profit MarginProfitability
1.8%3/10

1.8% margin — thin

P/E RatioValuation
70.8x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-1.78B2/10

Negative free cash flow — burning cash

PSEC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.554/10

Expensive relative to growth rate

P/E RatioValuation
36.3x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.12B3/10

Smaller company, higher risk/reward

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

Bull Case : BN

The strongest argument for BN centers on Market Cap, Price/Book, Operating Margin. PEG of 1.27 suggests the stock is reasonably priced for its growth.

Bull Case : PSEC

The strongest argument for PSEC centers on Price/Book, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 70.3%.

Bear Case : BN

The primary concerns for BN are Return on Equity, Profit Margin, P/E Ratio. A P/E of 70.8x leaves little room for execution misses. Debt-to-equity of 5.69 is elevated, increasing financial risk.

Bear Case : PSEC

The primary concerns for PSEC are PEG Ratio, P/E Ratio, Market Cap.

Key Dynamics to Monitor

BN profiles as a value stock while PSEC is a declining play — different risk/reward profiles.

BN carries more volatility with a beta of 1.82 — expect wider price swings.

BN is growing revenue faster at 8.5% — sustainability is the question.

PSEC generates stronger free cash flow (55M), providing more financial flexibility.

Bottom Line

BN scores higher overall (63/100 vs 56/100). Both earn "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 Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Brookfield Corporation is an alternative asset manager and REIT/Real Estate Investment Manager firm focuses on real estate, renewable power, infrastructure and venture capital and private equity assets. The company is headquartered in Toronto, Canada with additional offices across Northern America; South America; Europe; Middle East and Asia.

Prospect Capital Corporation

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Prospect Capital Corporation (PSEC) is a prominent publicly traded business development company that specializes in offering customized financing solutions to middle-market enterprises. Boasting a diversified investment portfolio comprising both debt and equity, PSEC concentrates on growth-oriented firms across various sectors, ensuring a strategic approach to capital allocation. The company is committed to generating attractive, risk-adjusted returns for its shareholders while adhering to sustainable investment principles and enhancing social responsibility. PSEC's emphasis on fostering the growth of its portfolio companies positions it as a key partner for business advancement, appealing particularly to socially-conscious investors seeking impactful investment opportunities.

Want to dig deeper into these stocks?