Brookfield Business Partners L.P. (BBUC) vs Valmont Industries, Inc. (VMI)

Brookfield Business Partners L.P. and Valmont Industries, Inc. are both Conglomerates companies. Valmont Industries, Inc. is the larger, with a market value of $9.0B against $5.2B — 1.7× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Valmont Industries, Inc. trades at 18.0×. Valmont Industries, Inc. grew revenue faster over the last twelve months: 3.80% against −10.5%. Valmont Industries, Inc. has the higher net margin (11.3% vs −0.20%) and the higher return on invested capital (15.6% vs 4.68%). Both pay a dividend; Brookfield Business Partners L.P. yields more (1.09% vs 1.01%). Across the 22 metrics below, Valmont Industries, Inc. leads on 13 and Brookfield Business Partners L.P. on 9.

Valuation

Metric BBUC VMI Conglomerates median
P/E n/m 18.03 17.47
P/S 0.19 2.14 0.88
P/B 0.36 5.24 1.40
Price to free cash flow 11.61 27.82 12.58
EV/EBITDA 6.27 14.35 11.36
EV/Sales 1.68 2.28 1.37
Earnings yield (1.53%) 5.55% 0.65%
Free cash flow yield 8.61% 3.60% 0.00%

Profitability

Metric BBUC VMI Conglomerates median
Gross margin 19.71% 30.37% 33.55%
Operating margin 15.43% 13.70% 3.36%
Net margin (0.20%) 11.33% 0.97%
Free cash flow margin 1.68% 7.68% (0.94%)
Return on equity (0.38%) 29.46% 0.75%
Return on assets (0.07%) 14.08% 0.10%
Return on invested capital 4.68% 15.63% 0.73%

Growth

Metric BBUC VMI Conglomerates median
Revenue growth (TTM) (10.49%) 3.80% 8.17%
EPS growth (last fiscal year) 40.00% (2.33%) —
Revenue growth, 5-year CAGR (6.11%) 7.23% 6.01%
Net income growth, 5-year CAGR 0.00% 18.93% 0.00%

Health

Metric BBUC VMI Conglomerates median
Debt to equity 2.90 0.42 0.48
Current ratio 1.44 2.35 1.79
Net debt to EBITDA 5.42 1.21 1.36

Dividend

Metric BBUC VMI Conglomerates median
Dividend yield 1.09% 1.01% 2.53%
Payout ratio 1.92 0.18 0.00

Size

Metric BBUC VMI Conglomerates median
Market cap 5.15b 8.98b 519.65m

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