Chicago Atlantic BDC (NASDAQ:LIEN – Get Free Report) and KKR & Co. Inc. (NYSE:KKR – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Institutional & Insider Ownership
4.4% of Chicago Atlantic BDC shares are held by institutional investors. Comparatively, 76.3% of KKR & Co. Inc. shares are held by institutional investors. 12.9% of Chicago Atlantic BDC shares are held by insiders. Comparatively, 23.2% of KKR & Co. Inc. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk & Volatility
Chicago Atlantic BDC has a beta of 0.3, indicating that its stock price is 70% less volatile than the S&P 500. Comparatively, KKR & Co. Inc. has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Chicago Atlantic BDC | 52.82% | 11.66% | 10.21% |
| KKR & Co. Inc. | 14.41% | 5.88% | 1.07% |
Valuation & Earnings
This table compares Chicago Atlantic BDC and KKR & Co. Inc.”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Chicago Atlantic BDC | $54.30 million | 4.04 | $33.28 million | $1.39 | 6.91 |
| KKR & Co. Inc. | $19.46 billion | 4.30 | $2.37 billion | $3.14 | 29.69 |
KKR & Co. Inc. has higher revenue and earnings than Chicago Atlantic BDC. Chicago Atlantic BDC 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.
Dividends
Chicago Atlantic BDC pays an annual dividend of $1.36 per share and has a dividend yield of 14.2%. KKR & Co. Inc. pays an annual dividend of $0.78 per share and has a dividend yield of 0.8%. Chicago Atlantic BDC pays out 97.8% 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. pays out 24.8% of its earnings in the form of a dividend. KKR & Co. Inc. has raised its dividend for 5 consecutive years.
Analyst Recommendations
This is a summary of recent ratings and price targets for Chicago Atlantic BDC and KKR & Co. Inc., as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Chicago Atlantic BDC | 0 | 1 | 0 | 0 | 2.00 |
| KKR & Co. Inc. | 0 | 3 | 12 | 0 | 2.80 |
KKR & Co. Inc. has a consensus price target of $130.00, suggesting a potential upside of 39.44%. Given KKR & Co. Inc.’s stronger consensus rating and higher probable upside, analysts clearly believe KKR & Co. Inc. is more favorable than Chicago Atlantic BDC.
Summary
KKR & Co. Inc. beats Chicago Atlantic BDC on 13 of the 17 factors compared between the two stocks.
About Chicago Atlantic BDC
Chicago Atlantic BDC Inc. is a specialty finance company which has elected to be regulated as a business development company. Its investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. Chicago Atlantic BDC Inc., formerly known as CHICAGO ATLNTIC, is based in NEW YORK.
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.
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