Comparing KKR & Co. Inc. (NYSE:KKR) & Royalty Management (NASDAQ:RMCO)

KKR & Co. Inc. (NYSE:KKR) and Royalty Management (NASDAQ:RMCO) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares KKR & Co. Inc. and Royalty Management’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
KKR & Co. Inc.	13.84%	6.12%	1.06%
Royalty Management	-9.22%	-2.94%	-2.13%

Volatility & Risk

KKR & Co. Inc. has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500. Comparatively, Royalty Management has a beta of -0.07, indicating that its stock price is 107% less volatile than the S&P 500.

Insider and Institutional Ownership

76.3% of KKR & Co. Inc. shares are held by institutional investors. Comparatively, 67.2% of Royalty Management shares are held by institutional investors. 39.3% of KKR & Co. Inc. shares are held by company insiders. Comparatively, 57.1% of Royalty Management shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares KKR & Co. Inc. and Royalty Management”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
KKR & Co. Inc.	$21.88 billion	5.33	$3.08 billion	$2.36	55.46
Royalty Management	$810,000.00	70.65	-$110,000.00	($0.01)	-378.00

KKR & Co. Inc. has higher revenue and earnings than Royalty Management. Royalty Management 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.

Analyst Ratings

This is a summary of recent ratings and target prices for KKR & Co. Inc. and Royalty Management, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
KKR & Co. Inc.	1	4	11	1	2.71
Royalty Management	1	1	1	0	2.00

KKR & Co. Inc. presently has a consensus price target of $158.79, indicating a potential upside of 21.32%. Given KKR & Co. Inc.’s stronger consensus rating and higher possible upside, research analysts clearly believe KKR & Co. Inc. is more favorable than Royalty Management.

Dividends

KKR & Co. Inc. pays an annual dividend of $0.74 per share and has a dividend yield of 0.6%. Royalty Management pays an annual dividend of $0.01 per share and has a dividend yield of 0.3%. KKR & Co. Inc. pays out 31.4% of its earnings in the form of a dividend. Royalty Management pays out -100.0% 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. Inc. has raised its dividend for 5 consecutive years. KKR & Co. Inc. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

KKR & Co. Inc. beats Royalty Management on 15 of the 18 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 Royalty Management

Royalty Management Holding Corporation provides environmental consulting and services in the United States. It is also involved in investing or purchasing assets, such as real estate and mining permits, patents, intellectual property, and emerging technologies. The company was incorporated in 2021 and is based in Fishers, Indiana.