Last updated: 18:41 / Tuesday, 3 March 2015
S&P Capital IQ Report

Differences In Private And Public Company Profitability Indicate Potential Investment Opportunities In Brazil

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Differences In Private And Public Company Profitability Indicate Potential Investment Opportunities In Brazil
  • New Research by S&P Capital IQ compares key metrics of privately owned and publicly traded companies
  • Brazil and Latin America continue to offer attractive investment opportunities, as reflected in record breaking regional private equity fund raising and increased merger volumes in Brazil

In a report released yesterday entitled Brazilian Public Versus Private Companies: Current State of Affairs, S&P Capital IQ concludes that while Brazil's publicly traded companies provide a better return on their assets in a majority of industries, privately owned companies generally do better at generating sales off their asset base. "Most privately owned companies use assets to drive sales more efficiently, but are not as good at managing costs" said Jay Bhankharia, Senior Manager, S&P Capital IQ, and author of the report.  "We believe this implies that strategic guidance and increased oversight can potentially increase margins and profitability substantially for some of these companies."

"Brazil and Latin America continue to offer attractive investment opportunities, as reflected in record breaking regional private equity fund raising and increased merger volumes in Brazil" said Cynthia Rojas Sejas, Vice President, Market Development-Latin America, S&P Capital IQ.

S&P Capital IQ looks at the performance of companies in various sectors of the Brazilian economy, while providing insight into the differences between the profiles of Privately Owned and Publicly Traded companies.  This report compares public and private companies' ratios of profitability, efficiency, solvency, and liquidity, leveraging the recent addition of Brazilian Private Company Financials to its comprehensive database of standardized and comparable data for public and private companies globally. 

Brazilian Public Versus Private Companies: Current State of Affairslooks at a statistical sample consisting of 93 companies with more than $1 billion in revenue, 637 with $100 million to $1 billion in revenue, and 1,862 companies with less than $100 million in revenue.  In addition to key valuation and credit metrics, the report takes a look at specific ratios within the banking and energy sectors to better understand key metrics in those industries. 

S&P Capital IQ's Brazil research is the topic of an upcoming investment seminar entitled "Brazil: Uncovering Potential Opportunities" that will feature Macroeconomist Bernardo Wjuniski from Medley Global Advisors, and Jay Bhankharia and Richard Peterson from S&P Capital IQ.

For your information...

S&P Capital IQ, apart of McGraw Hill Financial is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks,investment advisors and wealth managers, corporations and universities around the world. S&P Capital IQ provides a broad suite of capabilities designed to help track performance, generate alpha, and identify new trading and investment ideas, and perform risk analysis and mitigation strategies.

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