Ameriprise Financial (NYSE:AMP) and KKR & Co. Inc. (NYSE:KKR) are both large-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares Ameriprise Financial and KKR & Co. Inc.'s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Ameriprise Financial | 15.16% | 33.79% | 1.38% |
KKR & Co. Inc. | N/A | 4.28% | 2.02% |
Earnings and Valuation
This table compares Ameriprise Financial and KKR & Co. Inc.'s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Ameriprise Financial | $12.97 billion | 1.89 | $1.89 billion | $16.10 | 12.94 |
KKR & Co. Inc. | $4.22 billion | 5.49 | $2.01 billion | $1.67 | 24.38 |
KKR & Co. Inc. has lower revenue, but higher earnings than Ameriprise Financial. Ameriprise Financial 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.
Institutional and Insider Ownership
83.1% of Ameriprise Financial shares are owned by institutional investors. Comparatively, 78.0% of KKR & Co. Inc. shares are owned by institutional investors. 1.5% of Ameriprise Financial shares are owned by company insiders. Comparatively, 39.3% of KKR & Co. Inc. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Risk and Volatility
Ameriprise Financial has a beta of 1.74, indicating that its stock price is 74% more volatile than the S&P 500. Comparatively, KKR & Co. Inc. has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.
Dividends
Ameriprise Financial pays an annual dividend of $4.16 per share and has a dividend yield of 2.0%. KKR & Co. Inc. pays an annual dividend of $0.54 per share and has a dividend yield of 1.3%. Ameriprise Financial pays out 25.8% of its earnings in the form of a dividend. KKR & Co. Inc. pays out 32.3% 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. Ameriprise Financial has increased its dividend for 10 consecutive years. Ameriprise Financial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Ameriprise Financial and KKR & Co. Inc., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Ameriprise Financial | 0 | 1 | 10 | 0 | 2.91 |
KKR & Co. Inc. | 0 | 3 | 9 | 1 | 2.85 |
Ameriprise Financial presently has a consensus target price of $191.00, suggesting a potential downside of 8.30%. KKR & Co. Inc. has a consensus target price of $37.6667, suggesting a potential downside of 7.50%. Given KKR & Co. Inc.'s higher possible upside, analysts plainly believe KKR & Co. Inc. is more favorable than Ameriprise Financial.
Summary
Ameriprise Financial beats KKR & Co. Inc. on 11 of the 18 factors compared between the two stocks.