BBUC (Brookfield Business Corp) vs S&P TSX Composite Index (Canada) Comparison

BBUC

S&P TSX Composite Index (Canada)

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BBUC

S&P TSX Composite Index (Canada)

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BBUC

S&P TSX Composite Index (Canada)

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P TSX Composite Index (Canada)

BBUC

SIE

HON

6501

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Brookfield Business Corp
Glance View

Market Cap

4.1B CAD

Industry

Industrial Conglomerates

Brookfield Business Corporation, a subsidiary of the expansive Brookfield Asset Management, operates with a keen eye for opportunity across a broad spectrum of industries. Rooted in a philosophy that combines astute asset management with operational enhancements, Brookfield Business Corp. is in the business of acquiring high-quality companies and operational assets that exhibit room for improvement. Once these assets are acquired, the company leverages its deep industry expertise and substantial financial backing to introduce efficiencies and drive performance improvements, unlocking value through strategic transformations. This distinct operational approach allows Brookfield to align itself deeply with the operational management of its investments, ensuring that these assets are not just passively held but are actively managed and optimized to achieve their full potential. Brookfield's revenue streams are as diverse as its interests. By focusing on sectors such as infrastructure, renewable energy, real estate, and private equity, the company capitalizes on long-term investment horizons and sectoral tailwinds. Across these industries, Brookfield exercises an adept balance of acquiring distressed or undervalued assets and enhancing their profitability through strategic interventions. Meanwhile, the steady cash flows generated from these assets provide a stable, underlying revenue base that supports the company's ongoing investment strategy. This dynamic approach not only enables Brookfield to sustain its growth trajectory but also fortifies its reputation as a disciplined investor and a proactive asset manager. Through its rigorous focus on value creation and operational excellence, the company effectively navigates the complexities of global markets while ensuring sustainable, long-term returns for its stakeholders.

View BBUC Analysis

BBUC Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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ZA	B	Bidvest Group Ltd JSE:BVT	Add
US	R	Roper Technologies Inc F:ROP	Add
CN		CITIC Ltd HKEX:267	Add
HK		CK Hutchison Holdings Ltd HKEX:1	Add
PH		SM Investments Corp XPHS:SM	Add

US		General Electric Co NYSE:GE	Select
DE		Siemens AG XETRA:SIE	Select
US		Honeywell International Inc NASDAQ:HON	Select
JP		Hitachi Ltd TSE:6501	Select
US		3M Co NYSE:MMM	Select
ZA	B	Bidvest Group Ltd JSE:BVT	Select
US	R	Roper Technologies Inc F:ROP	Select
CN		CITIC Ltd HKEX:267	Select
HK		CK Hutchison Holdings Ltd HKEX:1	Select
PH		SM Investments Corp XPHS:SM	Select

US		General Electric Co NYSE:GE	Add
DE		Siemens AG XETRA:SIE	Add
US		Honeywell International Inc NASDAQ:HON	Add
JP		Hitachi Ltd TSE:6501	Add
US		3M Co NYSE:MMM	Add
ZA	B	Bidvest Group Ltd JSE:BVT	Add
US	R	Roper Technologies Inc F:ROP	Add
CN		CITIC Ltd HKEX:267	Add
HK		CK Hutchison Holdings Ltd HKEX:1	Add
PH		SM Investments Corp XPHS:SM	Add

UK	E	Eight Capital Partners PLC F:ECS	Add
CA		Australian Goldfields Ltd OTC:GRXXF	Add
IN	A	Aaswa Trading and Exports Ltd BSE:512038	Add
IN	G	GTV Engineering Ltd BSE:539479	Add
US	G	GE Vernova LLC NYSE:GEV	Add
IN	S	SAB Industries Ltd BSE:539112	Add
US	C	China Industrial Group Inc OTC:CIND	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
MY	M	Malton Bhd KLSE:MALTON	Add
IN	V	Vasundhara Rasayans Ltd BSE:538634	Add

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BBUC

vs

S&P TSX Composite Index (Canada)

Stocks Performance
BBUC vs S&P TSX Composite Index (Canada)

Performance Gap
BBUC vs S&P TSX Composite Index (Canada)

Performance By Year
BBUC vs S&P TSX Composite Index (Canada)

Competitors Performance
Brookfield Business Corp vs Peers

Brookfield Business Corp
Glance View

Company

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BBUC vs S&P TSX Composite Index (Canada)

Stocks Performance BBUC vs S&P TSX Composite Index (Canada)

Performance Gap BBUC vs S&P TSX Composite Index (Canada)

Performance By Year BBUC vs S&P TSX Composite Index (Canada)

Competitors Performance Brookfield Business Corp vs Peers

Brookfield Business Corp Glance View

Company

Help

Tools

Stocks

BBUC

vs

S&P TSX Composite Index (Canada)

Stocks Performance
BBUC vs S&P TSX Composite Index (Canada)

Performance Gap
BBUC vs S&P TSX Composite Index (Canada)

Performance By Year
BBUC vs S&P TSX Composite Index (Canada)

Competitors Performance
Brookfield Business Corp vs Peers

Brookfield Business Corp
Glance View