Analysis of Brookfield Asset Management (NYSE:BAM) and KKR & Co. Inc. (NYSE:KKR)
Brookfield Asset Management (NYSE:BAM) and KKR & Co. Inc. (NYSE:KKR) are major financial companies, but which one is more attractive for investment? In this article, we will analyze both companies based on their revenues, risks, dividends, valuation, institutional ownership, profitability, and analyst recommendations.
Institutional and internal ownership of shares
68.4% of Brookfield Asset Management's shares are controlled by institutional investors, while 76.3% of KKR & Co. Inc.'s shares have the same ownership. 11.0% of Brookfield Asset Management's shares are held by insiders, whereas 39.3% of KKR & Co. Inc.'s shares belong to them. A high proportion of institutional ownership may indicate that large money managers, funds, and hedge funds are optimistic about the stocks, believing they will become more valuable in the long term.
Analyst ratings
Below is a summary of the current ratings and target prices for Brookfield Asset Management and KKR & Co. Inc., according to MarketBeat data. There is a predominance of sell and hold ratings, with a significant number of buy recommendations. The rating for Brookfield Asset Management is:
1 rating for sale,
4 for retention,
5 for the purchase, which results in an average rating of 2.55.
At the same time, KKR & Co. Inc. has no sell recommendations, 1 hold, and 13 buy ratings with a credit of 2.93. The current target price for Brookfield Asset Management is $42.14, which suggests a slight potential decline of 0.06%. KKR & Co. Inc. is targeting a price of $101.20, indicating a more significant decline of 13.26%. Based on analysts' expectations, shares of Brookfield Asset Management appear to be more promising than those of KKR & Co. Inc.
Profitability
In this section, we will analyze the net margin, return on equity, and return on assets for both companies. Brookfield Asset Management demonstrates:
a clean margin of 49.36%,
return on capital 98.98% and
Return on assets is 67.65%.
For comparison, KKR & Co. Inc. shows:
a net margin of 19.38%
return on capital 4.52% and
Return on assets at 0.86%.
This means that Brookfield Asset Management significantly outperforms KKR & Co.
Income and valuation
Next, let's compare the revenue and earnings per share of both companies. Brookfield Asset Management had a revenue of $4.06 billion with a price-to-revenue ratio of 4.61, a net income of $451 million, and earnings per share of $1.08, which corresponds to a price-to-earnings ratio of 39.04. Meanwhile, KKR & Co. Inc. has significantly higher revenue of $14.50 billion with a price-to-revenue ratio of 7.14, a net income of $3.73 billion, and earnings per share of $4.46, which corresponds to a lower price-to-earnings ratio of 26.16. This indicates that KKR & Co. Inc. has a higher level of revenue and profits compared to Brookfield Asset Management, even though KKR's shares are trading at a lower price relative to earnings.
Dividends
Brookfield Asset Management pays dividends of1.52 dollarson a stock with dividend yield3.6%KKR & Co. Inc. is paying out0.70 dollarson a stock with a dividend yield of only0.6%The dividends from Brookfield amount to140.7%from profits, which indicates a risk of insufficient income to cover dividends in the future, while KKR only pays15.7%from my income.
Volatility and risk
Brookfield Asset Management has a beta coefficient.1.63...which means that its stock market is more volatile.63%Compared to the S&P 500, KKR & Co. Inc. shows a beta.1.62what corresponds62%volatility.
Resume
In the final comparison, KKR & Co. Inc. outperforms Brookfield Asset Management in9 out of 17 factorsWhat additional advice can be offered to investors when choosing stocks for capital investment?
About Brookfield Asset Management
Brookfield Asset Management is an investment company specializing in the management of alternative assets. The renewable energy business includes hydroelectric, wind, and solar elements. The infrastructure sector operates in utilities, transportation, and information technology. Private equity covers various sectors from residential and logistics to hospitality and science. The company also provides credit and insurance solutions. Brookfield was founded in 2022 and operates out of Toronto, Canada.
About KKR & Co. Inc.
KKR & Co. Inc. is engaged in private equity and investments inreal estateand specializes in direct investments and funds. She is active in various sectors, focusing on software, media, and technology, as well asreal estateFounded in 1976 and located inNew YorkKKR and its offices cover North America, Europe, and Asia, which helps implement global development and investment strategies.
To receive fresh news and ratings on Brookfield Asset Management, you can subscribe to free daily updates at MarketBeat.com.
Comment
Popular Posts
Popular Offers
Subscribe to the newsletter from Hatamatata.com!
Subscribe to the newsletter from Hatamatata.com!
I agree to the processing of personal data and confidentiality rules of Hatamatata