Brookfield Business Partners L.P. (BBUC) vs Pampa Energia S.A. (PAM)

Brookfield Business Partners L.P. and Pampa Energia S.A. are both Conglomerates companies. Brookfield Business Partners L.P. is the larger, with a market value of $5.2B against $4.2B — 1.2× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Pampa Energia S.A. trades at 7.4×. Pampa Energia S.A. grew revenue faster over the last twelve months: 28.9% against −10.5%. Pampa Energia S.A. has the higher net margin (23.6% vs −0.20%) and the higher return on invested capital (5.90% vs 4.68%). Both pay a dividend; Brookfield Business Partners L.P. yields more (1.09% vs 0.02%). Across the 20 metrics below, Pampa Energia S.A. leads on 13 and Brookfield Business Partners L.P. on 7.

Valuation

Metric BBUC PAM Conglomerates median
P/E n/m 7.40 17.47
P/S 0.19 1.71 0.88
P/B 0.36 1.02 1.40
Price to free cash flow 11.61 n/m 12.58
EV/EBITDA 6.27 5.43 11.36
EV/Sales 1.68 2.25 1.37
Earnings yield (1.53%) 13.51% 0.65%
Free cash flow yield 8.61% (10.89%) 0.00%

Profitability

Metric BBUC PAM Conglomerates median
Gross margin 19.71% 33.55% 33.55%
Operating margin 15.43% 20.94% 3.36%
Net margin (0.20%) 23.58% 0.97%
Free cash flow margin 1.68% (18.82%) (0.94%)
Return on equity (0.38%) 15.13% 0.75%
Return on assets (0.07%) 8.22% 0.10%
Return on invested capital 4.68% 5.90% 0.73%

Growth

Metric BBUC PAM Conglomerates median
Revenue growth (TTM) (10.49%) 28.91% 8.17%
EPS growth (last fiscal year) 40.00% (39.21%) —
Revenue growth, 5-year CAGR (6.11%) 13.24% 6.01%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BBUC PAM Conglomerates median
Debt to equity 2.90 0.64 0.48
Current ratio 1.44 3.64 1.79
Net debt to EBITDA 5.42 0.96 1.36

Dividend

Metric BBUC PAM Conglomerates median
Dividend yield 1.09% 0.02% 2.53%
Payout ratio 1.92 0.00 0.00

Size

Metric BBUC PAM Conglomerates median
Market cap 5.15b 4.21b 519.65m

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