Differences In Private And Public Company Profitability Indicate Potential Investment Opportunities In Brazil, Says New S&P Capital IQ Report

New Research compares key metrics of Privately Owned and Publicly Traded Companies, leveraging S&P Capital IQ’s recent addition of Brazil Private Company Financials to its global database of public companies

Mar 02, 2015 / 09:00 AM
New York, NY

New York, NY – March 2, 2015 – As part of its continuing focus on Latin American financial data and analytics,  S&P Capital IQ today released a new report that 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. 

In a report 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.”

Brazilian Public Versus Private Companies: Current State of Affairs looks 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.  Click here for a copy of the report.

“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 is committed to helping investors both inside and outside Brazil better evaluate and compare these opportunities.  Our introduction of Brazil Private Company Financials reinforces this commitment by creating the first robust solution for analysis of both private and public companies in Brazil.”

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 more information or to register to attend, click here.

Research data for the S&P Capital IQ report is drawn from the firm’s proprietary platform that contains normalized financial data and information on over 3,500,000 public and private companies worldwide. Similar reports by S&P Capital IQ analysts on Brazilian companies, as well as others in Mexico, Chile and Colombia are offered quarterly.  Topics include M&A, fixed income, credit trends and comparisons of other company-specific activities within industry sectors.   


S&P Capital IQ, a part of McGraw Hill Financial (NYSE:MHFI), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks,

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