CION Investment (NYSE:CION) & Brookfield Asset Management (NYSE:BAM) Financial Contrast

Brookfield Asset Management (NYSE:BAM) and CION Investment (NYSE:CION) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Brookfield Asset Management and CION Investment, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brookfield Asset Management	1	6	5	1	2.46
CION Investment	1	2	0	0	1.67

Brookfield Asset Management presently has a consensus price target of $58.65, indicating a potential upside of 27.40%. CION Investment has a consensus price target of $6.50, indicating a potential downside of 8.90%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brookfield Asset Management is more favorable than CION Investment.

Institutional and Insider Ownership

68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 32.0% of CION Investment shares are owned by institutional investors. 0.6% of CION Investment shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Brookfield Asset Management and CION Investment”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brookfield Asset Management	$4.82 billion	15.66	$2.48 billion	$1.72	26.77
CION Investment	$240.82 million	1.46	-$20.63 million	$0.06	118.92

Brookfield Asset Management has higher revenue and earnings than CION Investment. Brookfield Asset Management is trading at a lower price-to-earnings ratio than CION Investment, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Brookfield Asset Management has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, CION Investment has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Dividends

Brookfield Asset Management pays an annual dividend of $2.01 per share and has a dividend yield of 4.4%. CION Investment pays an annual dividend of $1.20 per share and has a dividend yield of 16.8%. Brookfield Asset Management pays out 116.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CION Investment pays out 2,000.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management has raised its dividend for 2 consecutive years and CION Investment has raised its dividend for 1 consecutive years.

Profitability

This table compares Brookfield Asset Management and CION Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brookfield Asset Management	48.89%	31.50%	15.75%
CION Investment	1.17%	11.95%	4.52%

Summary

Brookfield Asset Management beats CION Investment on 15 of the 18 factors compared between the two stocks.

About Brookfield Asset Management

Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.

About CION Investment

CION Investment Corporation is a business development company. It specializes in investments in senior secured loans, including unitranche loans, First Lien, second lien loans, long-term subordinated loans, and mezzanine loans; equity interests such as warrants or options; and corporate bonds; and other debt securities in middle-market companies. The firm invests in growth capital, acquisitions, leveraged buyouts, market/product expansion, refinancing and recapitalization. The fund also invests up to 30 percent of their assets opportunistically in other types of investments, including the securities of larger public companies and foreign securities. It also makes investments in the secondary loan market. The fund does not invest in start-up companies, turnaround situations, or companies with speculative business plans. The fund prefers to invest in high tech industries, healthcare, pharmaceuticals, business services, media, chemicals, plastic, rubber, telecommunication, consumer services, advertising, printing and publishing, consumer goods, durables, diversified financials, and other industries. It also invests in homebuilding, restaurants, beverage and tobacco bars, broadcasting, distributors, Non-durable good distribution, food beverage and tobacco, energy, oil gas and consumables fuels, insurance, aerospace and defense, industrial machinery, paper and forest product machinery, information technology, metals and mining, and real estate. It primarily seeks to invest in the United States. The fund seeks to invest between $5 million and $50 million in companies with an EBITDA between $25 million and $75 million with average targeted hold of $25 million. It also purchases minority interests in the form of common or preferred equity in the target companies, typically in conjunction with its debt investments or through a co-investment with a financial sponsor. The fund seeks to exit its investments through an initial public offering of common stock, a merger, a sale, or other recapitalization.