KKR & Co. L.P. (KKR) and OM Asset Management (OMAM) Head-To-Head Analysis

KKR & Co. L.P. (NYSE: KKR) and OM Asset Management (NYSE:OMAM) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Volatility & Risk

KKR & Co. L.P. has a beta of 1.51, suggesting that its stock price is 51% more volatile than the S&P 500. Comparatively, OM Asset Management has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.

Dividends

KKR & Co. L.P. pays an annual dividend of $0.68 per share and has a dividend yield of 3.2%. OM Asset Management pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. KKR & Co. L.P. pays out 34.3% of its earnings in the form of a dividend. OM Asset Management pays out 52.9% 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. L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations for KKR & Co. L.P. and OM Asset Management, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR & Co. L.P. 0 4 6 0 2.60
OM Asset Management 0 0 6 0 3.00

KKR & Co. L.P. presently has a consensus price target of $22.50, indicating a potential upside of 6.23%. OM Asset Management has a consensus price target of $18.70, indicating a potential upside of 11.11%. Given OM Asset Management’s stronger consensus rating and higher possible upside, analysts plainly believe OM Asset Management is more favorable than KKR & Co. L.P..

Profitability

This table compares KKR & Co. L.P. and OM Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KKR & Co. L.P. 35.65% 9.39% 3.94%
OM Asset Management 9.49% 114.45% 12.94%

Institutional and Insider Ownership

65.0% of KKR & Co. L.P. shares are owned by institutional investors. Comparatively, 64.9% of OM Asset Management shares are owned by institutional investors. 1.5% of OM Asset Management shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares KKR & Co. L.P. and OM Asset Management’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KKR & Co. L.P. $1.91 billion 5.30 $309.30 million $1.98 10.70
OM Asset Management $663.50 million 2.78 $126.40 million $0.68 24.75

KKR & Co. L.P. has higher revenue and earnings than OM Asset Management. KKR & Co. L.P. is trading at a lower price-to-earnings ratio than OM Asset Management, indicating that it is currently the more affordable of the two stocks.

Summary

KKR & Co. L.P. beats OM Asset Management on 8 of the 15 factors compared between the two stocks.

About KKR & Co. L.P.

KKR & CO. L.P. (KKR) is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit and hedge funds. The Company’s business offers a range of investment management services to its fund investors, and provides capital markets services to its firm, its portfolio companies and third parties. The Company conducts its business with offices across the world, providing it with a global platform for sourcing transactions, raising capital and carrying out capital markets activities. The Company operates through four segments: Private Markets, Public Markets, Capital Markets and Principal Activities. It operates and reports its combined credit and hedge funds businesses through the Public Markets segment. The Capital Markets segment consists primarily of its global capital markets business. Through its Principal Activities segment, the Company manages the firm’s assets and deploys capital.

About OM Asset Management

OM Asset Management plc is a global, diversified, multi-boutique asset management company. As of December 31, 2016, the Company operated its business through its eight Affiliates, each of which operated autonomously and employed its own investment processes. Its Affiliates include Acadian Asset Management LLC; Barrow, Hanley, Mewhinney & Strauss, LLC; Campbell Global, LLC; Copper Rock Capital Partners LLC; Heitman LLC; Investment Counselors of Maryland, LLC; Landmark Partners, LLC, and Thompson, Siegel & Walmsley LLC. It works with boutique asset managers, and the Company leverages the resources within its organization to engage with its Affiliates and provide them with capabilities unavailable to specialist asset management firms. The Company works with its Affiliates to identify and execute upon opportunities for their businesses in areas, such as business line expansion and product development, as well as activities required for the operation of investment boutiques.

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