KKR & Co. Inc. (NYSE:KKR – Get Free Report) and AFC Gamma (NASDAQ:AFCG – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Risk and Volatility
KKR & Co. Inc. has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, AFC Gamma has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.
Analyst Ratings
This is a breakdown of current ratings for KKR & Co. Inc. and AFC Gamma, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| KKR & Co. Inc. | 0 | 4 | 17 | 0 | 2.81 |
| AFC Gamma | 1 | 1 | 0 | 0 | 1.50 |
KKR & Co. Inc. currently has a consensus price target of $123.58, suggesting a potential upside of 28.27%. Given KKR & Co. Inc.’s stronger consensus rating and higher probable upside, equities research analysts clearly believe KKR & Co. Inc. is more favorable than AFC Gamma.
Insider and Institutional Ownership
76.3% of KKR & Co. Inc. shares are held by institutional investors. Comparatively, 26.5% of AFC Gamma shares are held by institutional investors. 23.2% of KKR & Co. Inc. shares are held by company insiders. Comparatively, 30.7% of AFC Gamma shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
KKR & Co. Inc. pays an annual dividend of $0.78 per share and has a dividend yield of 0.8%. AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.3%. KKR & Co. Inc. pays out 24.8% of its earnings in the form of a dividend. AFC Gamma pays out 105.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KKR & Co. Inc. has raised its dividend for 5 consecutive years.
Earnings and Valuation
This table compares KKR & Co. Inc. and AFC Gamma”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| KKR & Co. Inc. | $19.46 billion | 4.44 | $2.37 billion | $3.14 | 30.68 |
| AFC Gamma | $24.82 million | 2.90 | -$20.67 million | $0.19 | 16.68 |
KKR & Co. Inc. has higher revenue and earnings than AFC Gamma. AFC Gamma 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.
Profitability
This table compares KKR & Co. Inc. and AFC Gamma’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| KKR & Co. Inc. | 14.41% | 5.88% | 1.07% |
| AFC Gamma | 15.64% | 2.85% | 1.50% |
Summary
KKR & Co. Inc. beats AFC Gamma on 13 of the 17 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 AFC Gamma
AFC Gamma, Inc. originates, structures, underwrites, and invests in senior secured loans, and other various commercial real estate loans and debt securities for established companies operating in the cannabis industry. It primarily originates loans structured as senior loans secured by real estate, equipment, and licenses and/or other assets of the loan parties to the extent permitted by applicable laws and the regulations governing such loan parties. The company has elected and qualified to be taxed as a real estate investment trust for the United States federal income tax purposes under the Internal Revenue Code of 1986. AFC Gamma, Inc. was incorporated in 2020 and is based in West Palm Beach, Florida.
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