Brookfield Business Partners L.P. (BBUC) vs Deluxe Corporation (DLX)

Brookfield Business Partners L.P. and Deluxe Corporation are both Conglomerates companies. Brookfield Business Partners L.P. is the larger, with a market value of $5.2B against $1.1B — 4.6× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Deluxe Corporation trades at 10.8×. Deluxe Corporation grew revenue faster over the last twelve months: 0.28% against −10.5%. Deluxe Corporation has the higher net margin (4.76% vs −0.20%) and the higher return on invested capital (7.47% vs 4.68%). Both pay a dividend; Deluxe Corporation yields more (5.88% vs 1.09%). Across the 22 metrics below, Deluxe Corporation leads on 18 and Brookfield Business Partners L.P. on 4.

Valuation

Metric BBUC DLX Conglomerates median
P/E n/m 10.81 17.47
P/S 0.19 0.53 0.88
P/B 0.36 1.57 1.40
Price to free cash flow 11.61 5.33 12.58
EV/EBITDA 6.27 5.79 11.36
EV/Sales 1.68 1.19 1.37
Earnings yield (1.53%) 9.25% 0.65%
Free cash flow yield 8.61% 18.76% 0.00%

Profitability

Metric BBUC DLX Conglomerates median
Gross margin 19.71% 52.51% 33.55%
Operating margin 15.43% 11.88% 3.36%
Net margin (0.20%) 4.76% 0.97%
Free cash flow margin 1.68% 9.90% (0.94%)
Return on equity (0.38%) 14.94% 0.75%
Return on assets (0.07%) 3.95% 0.10%
Return on invested capital 4.68% 7.47% 0.73%

Growth

Metric BBUC DLX Conglomerates median
Revenue growth (TTM) (10.49%) 0.28% 8.17%
EPS growth (last fiscal year) 40.00% 58.47% —
Revenue growth, 5-year CAGR (6.11%) 3.56% 6.01%
Net income growth, 5-year CAGR 0.00% 73.71% 0.00%

Health

Metric BBUC DLX Conglomerates median
Debt to equity 2.90 2.02 0.48
Current ratio 1.44 1.20 1.79
Net debt to EBITDA 5.42 3.33 1.36

Dividend

Metric BBUC DLX Conglomerates median
Dividend yield 1.09% 5.88% 2.53%
Payout ratio 1.92 0.98 0.00

Size

Metric BBUC DLX Conglomerates median
Market cap 5.15b 1.12b 519.65m

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