Critical analysis of KKR & Co. Inc. (NYSE:KKR) and Brookfield Asset Management (NYSE:BAM)

KKR & Co. Inc. (NYSE:KKR) and Brookfield Asset Management (NYSE:BAM) are large financial companies, but which one is more attractive for investment? In this article, we will compare both companies based on a number of key factors, such as the level of institutional ownership, analyst recommendations, financial performance, valuation, risk levels, profitability, and dividends.

Profitability

To begin with, let's take a look at a comparative table that presents the net margins, return on equity, and return on assets of KKR & Co. Inc. and Brookfield Asset Management.

• Clean margins: KKR & Co. Inc. — 19.38%, Brookfield Asset Management — 49.36%.
• Return on equity: KKR & Co. Inc. — 4.52%, Brookfield Asset Management — 98.98%.
• Return on assets: KKR & Co. Inc. — 0.86%, Brookfield Asset Management — 67.65%.

Analyst Ratings

Currently, the table shows the recent ratings and target prices for KKR & Co. Inc. and Brookfield Asset Management.

• Sell: KKR & Co. Inc. — 0, Brookfield Asset Management — 1.
• Hold: KKR & Co. Inc. - 1, Brookfield Asset Management - 4.
• Buy: KKR & Co. Inc. — 12, Brookfield Asset Management — 5.
• Confident purchase: KKR & Co. Inc. — 0, Brookfield Asset Management — 1.
• Rating: KKR & Co. Inc. — 2.92, Brookfield Asset Management — 2.55.

Thus, the current target price for KKR & Co. Inc. is $99.21, which implies a potential decline of 5.56%. For Brookfield Asset Management, the target is $42.14, with an expected increase of 10.45%. Based on the higher growth forecasts for Brookfield Asset Management, it can be confidently stated that analysts prefer this company.

Volatility and Risk

Considering volatility, KKR & Co. Inc. has a beta coefficient of 1.62, indicating 62% greater variability in its stock compared to the S&P 500. Similarly, Brookfield Asset Management also shows the same volatility with an equivalent beta coefficient of 1.62.

Profit and Valuation

The following table presents comparative indicators of revenue, earnings per share, and valuations of KKR & Co. Inc.

• Total revenue: KKR & Co. Inc. — $14.50 billion, Brookfield Asset Management — $4.06 billion.
• Price-to-sales ratio: KKR & Co. Inc. — 6.43, Brookfield Asset Management — 4.17.
• Net income: KKR & Co. Inc. — $3.73 billion, Brookfield Asset Management — $451.00 million.
• Earnings per share: KKR & Co. Inc. — $4.46, Brookfield Asset Management — $1.08.
• Price-to-earnings ratio: KKR & Co. Inc. — 23.56, Brookfield Asset Management — 35.32.

Experts note thatrevenueandprofitKKR & Co. Inc. is significantly higher than Brookfield Asset Management. Moreover, the former is trading at a lower price-to-earnings ratio, making it more affordable at the moment.

Ownership by Insiders and Institutional Ownership

Institutional investors own 76.3% of KKR & Co. Inc. shares, while Brookfield Asset Management holds 68.4%. Insiders own 39.3% of KKR & Co. Inc. The high level of institutional ownership indicates that large funds and managers view this company as promising for long-term investments.

Dividends

KKR & Co. Inc. pays an annual dividend of $0.70 per share, which corresponds to a dividend yield of 0.7%. Meanwhile, Brookfield Asset Management offers dividends of $1.52 per share, with a yield of 4.0%. KKR & Co. Inc. distributes 15.7% of its profits as dividends, while Brookfield Asset Management pays out 140.7% of its earnings, which may indicate insufficient profits to cover its future dividend obligations.

Result

According to the results of the comparative analysis, KKR & Co. Inc. outperforms Brookfield Asset Management in 9 out of 16 criteria.

About KKR & Co. Inc.

KKR & Co. Inc. was founded in 1976 and is based in New York, with additional offices in North America, Europe, Australia, Sweden, and Asia. It is an investment firm focused on private equity and real estate investments, emphasizing direct investments and funds across various sectors. Their scope of activities includes the acquisition and management of various assets, including software, cybersecurity, and many others.

About Brookfield Asset Management

Brookfield Asset Management was founded in 2022 and is headquartered in Toronto, Canada. It is an investment firm that specializes in managing alternative assets, including hydroelectric, solar, and wind energy. The company also actively operates in the infrastructure and private equity sectors, offering a variety of services in real estate and finance.