Brookfield Business Partners L.P. (BBUC) vs Otter Tail Corporation (OTTR)

Brookfield Business Partners L.P. and Otter Tail Corporation are both Conglomerates companies. Brookfield Business Partners L.P. is the larger, with a market value of $5.2B against $3.7B — 1.4× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Otter Tail Corporation trades at 19.2×. Otter Tail Corporation grew revenue faster over the last twelve months: 0.27% against −10.5%. Otter Tail Corporation has the higher net margin (14.8% vs −0.20%) and the higher return on invested capital (5.15% vs 4.68%). Both pay a dividend; Otter Tail Corporation yields more (1.83% vs 1.09%). Across the 21 metrics below, Otter Tail Corporation leads on 14 and Brookfield Business Partners L.P. on 7.

Valuation

Metric BBUC OTTR Conglomerates median
P/E n/m 19.17 17.47
P/S 0.19 2.85 0.88
P/B 0.36 2.00 1.40
Price to free cash flow 11.61 n/m 12.58
EV/EBITDA 6.27 13.34 11.36
EV/Sales 1.68 3.50 1.37
Earnings yield (1.53%) 5.22% 0.65%
Free cash flow yield 8.61% (1.87%) 0.00%

Profitability

Metric BBUC OTTR Conglomerates median
Gross margin 19.71% 56.91% 33.55%
Operating margin 15.43% 17.13% 3.36%
Net margin (0.20%) 14.83% 0.97%
Free cash flow margin 1.68% (5.32%) (0.94%)
Return on equity (0.38%) 10.68% 0.75%
Return on assets (0.07%) 4.84% 0.10%
Return on invested capital 4.68% 5.15% 0.73%

Growth

Metric BBUC OTTR Conglomerates median
Revenue growth (TTM) (10.49%) 0.27% 8.17%
EPS growth (last fiscal year) 40.00% (8.65%) —
Revenue growth, 5-year CAGR (6.11%) 7.94% 6.01%
Net income growth, 5-year CAGR 0.00% 23.55% 0.00%

Health

Metric BBUC OTTR Conglomerates median
Debt to equity 2.90 0.67 0.48
Current ratio 1.44 1.71 1.79
Net debt to EBITDA 5.42 1.43 1.36

Dividend

Metric BBUC OTTR Conglomerates median
Dividend yield 1.09% 1.83% 2.53%
Payout ratio 1.92 0.26 0.00

Size

Metric BBUC OTTR Conglomerates median
Market cap 5.15b 3.71b 519.65m

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