In today's fast-paced and competitive business landscape, it is essential for investors and industry enthusiasts to thoroughly analyze companies before making investment decisions. In this article, we will conduct a comprehensive industry comparison, evaluating KKR (NYSE:KKR) against its key competitors in the Capital Markets industry. By examining key financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
KKR Background
KKR & Co Inc is one of the world's largest alternative asset managers, with $552.8 billion in total managed assets, including $446.4 billion in fee-earning AUM, at the end of 2023. The company has two core segments: asset management (which includes private markets—private equity, credit, infrastructure, energy, and real estate—and public markets—primarily credit and hedge/investment fund platforms) and insurance (following the firm's initial investment in, and then ultimate purchase of, Global Atlantic Financial Group, which is engaged in retirement/annuity and life insurance lines as well as reinsurance). On the asset management side, private markets account for 50% of fee-earning AUM and 70% of base management fees, while public markets account for 50% and 30%, respectively.
After thoroughly examining KKR, the following trends can be inferred:
Debt To Equity Ratio
The debt-to-equity (D/E) ratio assesses the extent to which a company relies on borrowed funds compared to its equity.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When examining KKR in comparison to its top 4 peers with respect to the Debt-to-Equity ratio, the following information becomes apparent:
Key Takeaways
For KKR in the Capital Markets industry, the PE and PB ratios are low compared to peers, indicating potential undervaluation. However, the PS ratio is high, suggesting rich valuation based on revenue. On the other hand, KKR's high ROE, EBITDA, gross profit, and revenue growth outperform industry peers, reflecting strong operational performance and growth potential.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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