KKR & Co. Inc. (NYSE:KKR – Get Free Report) and Royalty Management (NASDAQ:RMCO – Get Free Report) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.
Institutional & Insider Ownership
76.3% of KKR & Co. Inc. shares are owned by institutional investors. Comparatively, 67.2% of Royalty Management shares are owned by institutional investors. 39.3% of KKR & Co. Inc. shares are owned by company insiders. Comparatively, 57.1% of Royalty Management shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for KKR & Co. Inc. and Royalty Management, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KKR & Co. Inc. | 0 | 5 | 11 | 1 | 2.76 |
| Royalty Management | 1 | 1 | 1 | 0 | 2.00 |
Profitability
This table compares KKR & Co. Inc. and Royalty Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KKR & Co. Inc. | 13.84% | 6.12% | 1.06% |
| Royalty Management | -9.22% | -2.94% | -2.13% |
Earnings & Valuation
This table compares KKR & Co. Inc. and Royalty Management”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KKR & Co. Inc. | $21.88 billion | 5.46 | $3.08 billion | $2.36 | 56.81 |
| Royalty Management | $810,000.00 | 65.79 | -$110,000.00 | ($0.01) | -352.00 |
KKR & Co. Inc. has higher revenue and earnings than Royalty Management. Royalty Management is trading at a lower price-to-earnings ratio than KKR & Co. Inc., indicating that it is currently the more affordable of the two stocks.
Dividends
KKR & Co. Inc. pays an annual dividend of $0.74 per share and has a dividend yield of 0.6%. Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. KKR & Co. Inc. pays out 31.4% of its earnings in the form of a dividend. Royalty Management pays out -100.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. KKR & Co. Inc. has increased its dividend for 5 consecutive years. KKR & Co. Inc. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
KKR & Co. Inc. has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Royalty Management has a beta of -0.07, suggesting that its share price is 107% less volatile than the S&P 500.
Summary
KKR & Co. Inc. beats Royalty Management on 15 of the 18 factors compared between the two stocks.
About KKR & Co. Inc.
KKR & Co., Inc. operates as an investment firm. It offers alternative asset management as well as capital markets and insurance solutions. The firm’s business segments include Asset Management and Insurance Business. The Asset Management segment engages in providing private equity, real assets, credit and liquid strategies, capital markets, and principal activities. The Insurance Business segment offers retirement, life insurance and reinsurance solutions to clients across individual and institutional markets. The company was founded by Henry Kravis, George R. Roberts, and Jerome Kholberg on May 1, 1976 and is headquartered in New York, NY.
About Royalty Management
Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.
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