WallStSmart

Brookfield Asset Management Inc (BAM)vsHercules Capital Inc (HTGC)

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Smart Verdict

WallStSmart Research — data-driven comparison

Brookfield Asset Management Inc generates 805% more annual revenue ($4.82B vs $532.49M). HTGC leads profitability with a 63.8% profit margin vs 51.6%. HTGC appears more attractively valued with a PEG of 0.53. HTGC earns a higher WallStSmart Score of 76/100 (B+).

BAM

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 9.0Value: 7.3Quality: 6.0
Piotroski: 3/9

HTGC

Strong Buy

76

out of 100

Grade: B+

Growth: 8.7Profit: 8.5Value: 10.0Quality: 5.5
Piotroski: 5/9Altman Z: 0.98
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BAMSignificantly Overvalued (-400.1%)

Margin of Safety

-400.1%

Fair Value

$10.47

Current Price

$42.87

$32.40 premium

UndervaluedFair: $10.47Overvalued
HTGCUndervalued (+80.6%)

Margin of Safety

+80.6%

Fair Value

$86.58

Current Price

$14.18

$72.40 discount

UndervaluedFair: $86.58Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BAM5 strengths · Avg: 9.6/10
Profit MarginProfitability
51.6%10/10

Keeps 52 of every $100 in revenue as profit

Operating MarginProfitability
67.9%10/10

Strong operational efficiency at 67.9%

Revenue GrowthGrowth
31.1%10/10

Revenue surging 31.1% year-over-year

Market CapQuality
$70.28B9/10

Large-cap with strong market position

Return on EquityProfitability
22.3%9/10

Every $100 of equity generates 22 in profit

HTGC6 strengths · Avg: 9.3/10
P/E RatioValuation
7.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Profit MarginProfitability
63.8%10/10

Keeps 64 of every $100 in revenue as profit

Operating MarginProfitability
83.8%10/10

Strong operational efficiency at 83.8%

PEG RatioValuation
0.538/10

Growing faster than its price suggests

EPS GrowthGrowth
31.4%8/10

Earnings expanding 31.4% YoY

Areas to Watch

BAM4 concerns · Avg: 3.3/10
P/E RatioValuation
27.9x4/10

Moderate valuation

Price/BookValuation
8.5x4/10

Trading at 8.5x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-20.7%2/10

Earnings declined 20.7%

HTGC3 concerns · Avg: 2.3/10
Debt/EquityHealth
1.043/10

Elevated debt levels

Free Cash FlowQuality
$-55.64M2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.982/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : BAM

The strongest argument for BAM centers on Profit Margin, Operating Margin, Revenue Growth. Profitability is solid with margins at 51.6% and operating margin at 67.9%. Revenue growth of 31.1% demonstrates continued momentum.

Bull Case : HTGC

The strongest argument for HTGC centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 63.8% and operating margin at 83.8%. Revenue growth of 12.8% demonstrates continued momentum.

Bear Case : BAM

The primary concerns for BAM are P/E Ratio, Price/Book, Piotroski F-Score.

Bear Case : HTGC

The primary concerns for HTGC are Debt/Equity, Free Cash Flow, Altman Z-Score.

Key Dynamics to Monitor

BAM profiles as a growth stock while HTGC is a mature play — different risk/reward profiles.

BAM carries more volatility with a beta of 1.29 — expect wider price swings.

BAM is growing revenue faster at 31.1% — sustainability is the question.

BAM generates stronger free cash flow (706M), providing more financial flexibility.

Bottom Line

HTGC scores higher overall (76/100 vs 66/100), backed by strong 63.8% margins and 12.8% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Brookfield Asset Management Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Brookfield Asset Management is a leading global alternative asset manager and one of the largest investors in real assets.

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Hercules Capital Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Hercules Capital Inc. (HTGC) is a leading publicly traded business development company that specializes in providing tailored debt and equity financing solutions to venture growth-stage companies in technology, life sciences, and other high-growth industries. Leveraging its deep industry expertise, Hercules Capital strategically invests in innovative firms with a focus on fostering rapid expansion while maintaining a diversified portfolio that prioritizes strong credit quality and risk-adjusted returns. Through its capital solutions, Hercules enhances the scalability of entrepreneurial ventures, positioning itself as a vital partner in driving sustainable value for institutional investors.

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