WallStSmart

Brookfield Corp (BN)vsStellus Capital Investment (SCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Brookfield Corp generates 83014% more annual revenue ($80.69B vs $97.09M). SCM leads profitability with a 30.7% profit margin vs 1.8%. SCM trades at a lower P/E of 7.8x. 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

SCM

Buy

57

out of 100

Grade: C

Growth: 6.7Profit: 7.5Value: 6.7Quality: 3.3
Piotroski: 1/9

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

SCM6 strengths · Avg: 10.0/10
P/E RatioValuation
7.8x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.7%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
72.4%10/10

Strong operational efficiency at 72.4%

EPS GrowthGrowth
57.2%10/10

Earnings expanding 57.2% YoY

Free Cash FlowQuality
$56.17T10/10

Generating 56.2T in free cash flow

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

SCM4 concerns · Avg: 3.0/10
Market CapQuality
$224.99M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Debt/EquityHealth
1.633/10

Elevated debt levels

Piotroski F-ScoreQuality
1/93/10

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 : SCM

The strongest argument for SCM centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.7% and operating margin at 72.4%.

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 : SCM

The primary concerns for SCM are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.63 is elevated, increasing financial risk.

Key Dynamics to Monitor

BN profiles as a value stock while SCM 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.

SCM generates stronger free cash flow (56.2T), providing more financial flexibility.

Bottom Line

BN scores higher overall (63/100 vs 57/100). 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.

Stellus Capital Investment

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Stellus Capital Investment Corporation (SCM) is a distinguished business development company committed to delivering tailored debt and equity financing solutions to private middle-market enterprises. With a strong emphasis on risk-adjusted returns and capital preservation, Stellus employs a disciplined investment management strategy that emphasizes a diversified portfolio, including senior secured loans, subordinated debt, and equity investments across multiple sectors. This approach allows the company to effectively adapt to changing market dynamics while generating consistent income. For institutional investors, Stellus offers a compelling opportunity to gain exposure to resilient investment options in a competitive landscape.

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