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BBUC vs FRME

BBUC
Brookfield Business Corporation
BEARISH
Price
$35.42
Market Cap
$2.48B
Sector
Financial Services
AI Confidence
78%
FRME
First Merchants Corporation
NEUTRAL
Price
$41.47
Market Cap
$2.63B
Sector
Financial Services
AI Confidence
85%

Valuation

P/E Ratio
BBUC
--
FRME
10.53
Forward P/E
BBUC
--
FRME
9.14
P/B Ratio
BBUC
-5.05
FRME
0.97
P/S Ratio
BBUC
0.32
FRME
4.1
EV/EBITDA
BBUC
15.19
FRME
--

Profitability

Gross Margin
BBUC
8.47%
FRME
0.0%
Operating Margin
BBUC
5.01%
FRME
42.7%
Profit Margin
BBUC
-13.93%
FRME
35.22%
ROE
BBUC
-63.53%
FRME
9.47%
ROA
BBUC
1.15%
FRME
1.21%

Growth

Revenue Growth
BBUC
-23.9%
FRME
-4.6%
Earnings Growth
BBUC
--
FRME
-10.9%

Financial Health

Debt/Equity
BBUC
3.52
FRME
--
Current Ratio
BBUC
0.5
FRME
--
Quick Ratio
BBUC
0.43
FRME
--

Dividends

Dividend Yield
BBUC
0.69%
FRME
3.53%
Payout Ratio
BBUC
7.04%
FRME
36.86%

AI Verdict

BBUC BEARISH

BBUC exhibits extremely weak financial health with a Piotroski F-Score of just 1/9, indicating significant deterioration in fundamental performance. The negative Price/Book ratio of -5.05 and uncalculable Altman Z-Score suggest severe balance sheet distress, likely due to negative equity. Despite a recent 1-year price return of +52.8%, this is disconnected from fundamentals, as the company reports a -13.93% profit margin, 3.52 Debt/Equity ratio, and -23.90% YoY revenue growth. Valuation metrics are largely unavailable, but the stock appears deeply impaired from a financial stability and profitability standpoint.

Strengths
Recent 1-year price performance of +52.8% indicates strong market sentiment or speculative interest
Low Price/Sales ratio of 0.32 suggests potential undervaluation on sales basis
Operating Cash Flow and Free Cash Flow data unavailable, leaving room for potential hidden liquidity
Risks
Piotroski F-Score of 1/9 signals severe financial weakness and high risk of continued underperformance
Negative ROE of -63.53% and negative Price/Book ratio indicate likely negative shareholder equity and solvency concerns
Debt/Equity ratio of 3.52 is more than double the sector average (1.76), increasing default risk
FRME NEUTRAL

FRME presents as a classic value play with a stable Piotroski F-Score of 4/9, trading at a discount to its Graham Number ($61.18) and slightly below book value (P/B 0.97). While the company maintains a strong track record of earnings beats and a sustainable dividend, it is currently hampered by negative year-over-year revenue (-4.60%) and earnings growth (-10.90%). The valuation attractiveness is offset by bearish insider sentiment and a very weak technical trend, suggesting a period of stagnation or a potential value trap if growth does not pivot.

Strengths
Trading below book value (P/B 0.97)
Low P/E ratio (10.53) relative to sector averages
Strong historical earnings track record with consistent beats
Risks
Negative YoY revenue and earnings growth
Bearish insider activity with multiple sales and zero buys
Very weak technical trend (10/100)

Compare Another Pair

BBUC vs FRME: Head-to-Head Comparison

This page compares Brookfield Business Corporation (BBUC) and First Merchants Corporation (FRME) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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