KKR & Co. L.P. Unit (KKR) and Ameriprise Financial (AMP) Head-To-Head Review

KKR & Co. L.P. Unit (NYSE: KKR) and Ameriprise Financial (NYSE:AMP) are both large-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Dividends

KKR & Co. L.P. Unit pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. Ameriprise Financial pays an annual dividend of $3.60 per share and has a dividend yield of 2.6%. KKR & Co. L.P. Unit pays out 28.6% of its earnings in the form of a dividend. Ameriprise Financial pays out 29.3% 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 raised its dividend for 8 consecutive years. KKR & Co. L.P. Unit is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares KKR & Co. L.P. Unit and Ameriprise Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KKR & Co. L.P. Unit 30.30% 7.96% 3.42%
Ameriprise Financial 13.59% 33.67% 1.41%

Valuation & Earnings

This table compares KKR & Co. L.P. Unit and Ameriprise Financial’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KKR & Co. L.P. Unit $3.28 billion 3.76 $1.02 billion $2.38 10.44
Ameriprise Financial $12.03 billion 1.68 $1.48 billion $12.27 11.40

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

Insider & Institutional Ownership

69.0% of KKR & Co. L.P. Unit shares are held by institutional investors. Comparatively, 82.8% of Ameriprise Financial shares are held by institutional investors. 1.5% of Ameriprise Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

KKR & Co. L.P. Unit has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, Ameriprise Financial has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for KKR & Co. L.P. Unit and Ameriprise Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR & Co. L.P. Unit 0 3 7 0 2.70
Ameriprise Financial 0 5 4 0 2.44

KKR & Co. L.P. Unit currently has a consensus target price of $26.50, suggesting a potential upside of 6.64%. Ameriprise Financial has a consensus target price of $166.13, suggesting a potential upside of 18.76%. Given Ameriprise Financial’s higher probable upside, analysts clearly believe Ameriprise Financial is more favorable than KKR & Co. L.P. Unit.

Summary

Ameriprise Financial beats KKR & Co. L.P. Unit on 10 of the 17 factors compared between the two stocks.

KKR & Co. L.P. Unit Company Profile

KKR & Co. L.P. is a private equity and real estate investment firm specializing in direct and fund of fund investments. It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, and middle market investments. The firm considers investments in all industries with a focus on software, security, semiconductors, consumer electronics, internet of things (iot), internet, information services, information technology infrastructure, financial technology, network and cyber security architecture, engineering and operations, content, technology and hardware, energy and infrastructure, real estate, services industry with a focus on business services, intelligence, industry-leading franchises and companies in natural resource, containers and packaging, agriculture, airports, ports, forestry, electric utilities, textiles, apparel and luxury goods, household durables, digital media, insurance, brokerage houses, non-durable goods distribution, supermarket retailing, grocery stores, food, beverage, and tobacco, hospitals, entertainment venues and production companies, publishing, printing services, capital goods, financial services, specialized finance, pipelines, and renewable energy. In energy and infrastructure, it focuses on the upstream oil and gas and equipment, minerals and royalties and services verticals. In real estate, the firm seeks to invest in private and public real estate securities including property-level equity, debt and special situations transactions and businesses with significant real estate holdings, and oil and natural gas properties. The firm also invests in asset services sector that encompasses a broad array of B2B, B2C and B2G services verticals including asset-based, transport, logistics, leisure/hospitality, resource and utility support, infra-like, mission-critical, and environmental services. Within Americas, the firm prefers to invest in consumer products; chemicals, metals and mining; energy and natural resources; financial services; healthcare; industrials; media and communications; retail; and technology. Within Europe, the firm invests in consumer and retail; energy; financial services; health care; industrials and chemicals; media and digital; and telecom and technologies. Within Asia, it invests in consumer products; energy and resources; financial services; healthcare; industrials; logistics; media and telecom; retail; real estate; and technology. The firm seeks to invest in mid to high-end residential developments, but can invest in other projects throughout Mainland China through outright ownership, joint ventures, and merger. It invests globally with a focus on Australia, emerging and developed Asia, Middle East and Africa, Nordic, Southeast Asia, Asia Pacific, Ireland, Hong Kong, Japan, Taiwan, India, Vietnam, Malaysia, Singapore, Indonesia, France, Germany, Netherlands, United Kingdom, Caribbean, Mexico, South America, North America, Brazil, Latin America, Korea with a focus on South Korea, and United States of America. In the United States and Europe, the firm focuses on buyouts of large, publicly traded companies. It seeks to invest $30 million to $717 million in companies with enterprise values between $500 million to $2389 million. The firm prefers to invest in a range of debt and public equity investing and may co-invest. It seeks a board seat in its portfolio companies and a controlling ownership of a company or a strategic minority positions. The firm may acquire majority and minority equity interests, particularly when making private equity investments in Asia or sponsoring investments as part of a large investor consortium. The firm typically holds its investment for a period of five to seven years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers. KKR & Co. L.P. was founded in 1976 and is based in New York, New York with additional offices across North America, Europe, Australia, and Asia.

Ameriprise Financial Company Profile

Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. It operates through Advice & Wealth Management, Asset Management, Annuities, and Protection segments. The Advice & Wealth Management segment provides financial planning and advice, as well as full-service brokerage services primarily to retail clients through its advisors. The Asset Management segment offers investment management and advice, and investment products to retail, high net worth, and institutional clients through unaffiliated third party financial institutions and institutional sales force. This segment's products include U.S. mutual funds and their non-U.S. equivalents, exchange-traded funds, variable product funds underlying insurance, and annuity separate accounts; and institutional asset management products, such as traditional asset classes, separately managed accounts, individually managed accounts, collateralized loan obligations, hedge funds, collective funds, and property funds. The Annuities segment provides variable and fixed annuity products to individual clients through affiliated and unaffiliated advisors, and financial institutions. The Protection segment offers various products to address the protection and risk management needs of retail clients, including life, disability income, and property casualty insurance through advisors and affinity relationships. The company was formerly known as American Express Financial Corporation and changed its name to Ameriprise Financial, Inc. in September 2005. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota.

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