After reporting this morning, I think the share prices of both Brickworks Limited (ASX: BKW) and Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) are buys today.
Both of these business are interlinked due to their large holdings of each other and I think they're both good value despite the Brickworks share price rising by 6% and the Soul Patts share price going up by 3.1%.
The results were not exactly awe inspiring with Soul Patts' regular profit falling because of Round Oak Minerals and Brickworks' underlying profit rising thanks to a strong performance from its property trust.
Despite going up today, Soul Patts is still trading below its pre-tax value at 31 July 2019 of $5.5 billion. Being able to buy such a great business at a little discount to its underlying value is always attractive. I'm probably going to next time I have some new funds to invest.
Brickworks management revealed today that the inferred value of its business is $22 per share when you add up the values of its Soul Patts shares, its property trust and its building products assets. That means the current share price is at a 20% discount to its underlying value.
Both businesses have produced market-beating returns over the long-term and both have been growing their dividends for shareholders as well.
Soul Patts now has a grossed-up dividend yield of 3.6%.
Brickworks has a grossed-up dividend yield of 4.7%.
Foolish takeaway
I think both Brickworks and Soul Patts are priced at good value, have attractive long-term futures and are investing well in new areas for future growth. I'd rather buy Soul Patts because it's more diversified but both could be good for long-term total returns.
