Brookfield Infrastructure Partners (BIP 1.71%) has been a wealth-creating machine over the years. The global infrastructure giant has delivered nearly 17% annualized total returns since its formation in 2008. That has enabled the company to grow a relatively modest investment into a much more sizable payday. For example, a $500 investment at its formation would have grown into nearly $5,000.

With Brookfield's units selling off over the past year -- they're almost 24% below the recent high -- it's trading at an attractive level, especially compared to its corporate twin. This means investing $500 into the company now would be a genius move. 

A great value proposition

Brookfield Infrastructure offers two investment options. Investors can buy units of the publicly traded partnership, Brookfield Infrastructure Partners, or shares of the traditional corporation, Brookfield Infrastructure Corp. (BIPC 1.97%). While they're economically equivalent entities, the partnership units are the smarter buy these days. They currently trade at around $34.50 per unit, a roughly 25% discount to the $43.25 share price of the corporation.

This means that the partnership is a much more attractive value proposition. It trades at 11.5 times the approximately $3.00 per share/unit of funds from operations (FFO) the company expects to produce this year, while the corporation sells for 14.4 times FFO.

Meanwhile, the partnership units offer a higher income yield of 4.2% compared to the corporation's 3.3% dividend yield. While both are attractive compared to the broader market (the S&P 500 at 17.4 times forward price-to-earnings and 1.7% dividend yield), the partnership units are a better value.

Investors are paying a hefty premium for the corporate shares for no tangible benefit. While there are some complexities with filing taxes when owning a publicly traded partnership (it sends a Schedule K-1 instead of a Form 1099-DIV for tax purposes), there are also some tax advantages. Because of that, it shouldn't warrant a 25% price discount. For comparison, their renewable energy-focused siblings, Brookfield Renewable Partners and Brookfield Renewable Corp., only trade at a 7% price difference.   

Attractive growth prospects

Both Brookfield Infrastructure entities trade at a relatively attractive valuation compared to the broader market, considering their growth prospects. The company expects to grow its FFO per share by 12% to 15% this year, powered by its capital recycling program and organic growth drivers.

Brookfield completed several accretive acquisitions over the past year, funded by selling slower-growing assets. Meanwhile, its inflation-linked contracts are benefiting from elevated inflation, driving faster growth. The company is also getting a boost from recently completed expansion projects.

It anticipates a trio of catalysts (elevated inflation, higher volumes as the economy expands, and upcoming expansion projects) to power organic growth at or above the high end of its 6% to 9% target range over the next few years. Add in continued capital recycling, and Brookfield could deliver double-digit FFO-per-share growth in the coming years. That sets it up to grow faster than the broader market: The S&P 500 has grown its earnings by around a 7% compound annual rate over the last 15 years. 

That earnings growth supports Brookfield Infrastructure's plan to expand its already higher-yielding dividend at a 5% to 9% annual rate. And that growing income stream provides a nice base return. Add in its above-average earnings growth, and Brookfield could continue to outperform its objective of delivering 12% to 15% total annualized returns.

An intelligent investment

Brookfield Infrastructure's partnership units are trading at a steep discount to the corporate shares, even though they're economically equivalent. Because of that, they look like a wise investment, considering the company's attractive valuation and growth prospects. It could turn a relatively modest investment into a much bigger payday over the long term as the disconnect between its corporate twin narrows, and it grows its income and dividend.