Brookfield Business Partners L.P. (BBUC) vs Graham Holdings Company (GHC)

Brookfield Business Partners L.P. and Graham Holdings Company are both Conglomerates companies. Brookfield Business Partners L.P. is the larger, with a market value of $5.9B against $5.0B — 1.2× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Graham Holdings Company trades at 10.5×. Graham Holdings Company grew revenue faster over the last twelve months: 4.26% against −10.5%. Graham Holdings Company has the higher net margin (9.66% vs −0.20%) and the lower return on invested capital (3.88% vs 4.68%). Both pay a dividend; Brookfield Business Partners L.P. yields more (2.70% vs 0.62%). Across the 22 metrics below, Graham Holdings Company leads on 12 and Brookfield Business Partners L.P. on 10.

Valuation

Metric BBUC GHC Conglomerates median
P/E n/m 10.47 10.53
P/S 0.23 0.99 0.64
P/B 0.42 1.06 1.14
Price to free cash flow 13.74 28.98 15.31
EV/EBITDA 6.40 10.10 10.37
EV/Sales 1.72 0.92 1.25
Earnings yield (1.30%) 9.55% 1.02%
Free cash flow yield 7.28% 3.45% 0.00%

Profitability

Metric BBUC GHC Conglomerates median
Gross margin 19.71% 30.02% 30.27%
Operating margin 15.43% 5.37% 3.36%
Net margin (0.20%) 9.66% 0.59%
Free cash flow margin 1.68% 3.42% (0.12%)
Return on equity (0.38%) 10.62% 0.30%
Return on assets (0.07%) 6.12% 0.06%
Return on invested capital 4.68% 3.88% 0.73%

Growth

Metric BBUC GHC Conglomerates median
Revenue growth (TTM) (10.49%) 4.26% 8.17%
EPS growth (last fiscal year) 40.00% (59.32%) 12.05%
Revenue growth, 5-year CAGR (6.11%) 11.20% 6.85%
Net income growth, 5-year CAGR 0.00% (0.54%) 0.00%

Health

Metric BBUC GHC Conglomerates median
Debt to equity 2.90 0.18 0.46
Current ratio 1.44 1.76 1.71
Net debt to EBITDA 5.42 (1.24) 1.17

Dividend

Metric BBUC GHC Conglomerates median
Dividend yield 2.70% 0.62% 2.58%
Payout ratio — 0.07 0.36

Size

Metric BBUC GHC Conglomerates median
Market cap 5.88b 4.95b 389.84m

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