KKR & Co. L.P. (NYSE: KKR) and Financial Engines (NASDAQ:FNGN) are both mid-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation & Earnings

This table compares KKR & Co. L.P. and Financial Engines’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
KKR & Co. L.P. $5.31 billion 1.77 $1.13 billion $2.41 8.31
Financial Engines $458.22 million 5.08 $84.14 million $0.64 57.58

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

Profitability

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

Net Margins Return on Equity Return on Assets
KKR & Co. L.P. 42.48% 11.45% 4.79%
Financial Engines 8.98% 7.31% 6.64%

Analyst Ratings

This is a summary of recent recommendations and price targets for KKR & Co. L.P. and Financial Engines, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR & Co. L.P. 0 3 6 0 2.67
Financial Engines 0 0 5 0 3.00

KKR & Co. L.P. currently has a consensus price target of $21.89, suggesting a potential upside of 9.28%. Financial Engines has a consensus price target of $43.00, suggesting a potential upside of 16.69%. Given Financial Engines’ stronger consensus rating and higher possible upside, analysts plainly believe Financial Engines is more favorable than KKR & Co. L.P..

Insider and Institutional Ownership

65.2% of KKR & Co. L.P. shares are held by institutional investors. 16.0% of Financial Engines shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

KKR & Co. L.P. pays an annual dividend of $0.68 per share and has a dividend yield of 3.4%. Financial Engines pays an annual dividend of $0.28 per share and has a dividend yield of 0.8%. KKR & Co. L.P. pays out 28.2% of its earnings in the form of a dividend. Financial Engines pays out 43.8% 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. L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

KKR & Co. L.P. has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Financial Engines has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500.

Summary

KKR & Co. L.P. beats Financial Engines on 9 of the 16 factors compared between the two stocks.

KKR & Co. L.P. Company Profile

KKR & CO. L.P. (KKR) is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit and hedge funds. The Company’s business offers a range of investment management services to its fund investors, and provides capital markets services to its firm, its portfolio companies and third parties. The Company conducts its business with offices across the world, providing it with a global platform for sourcing transactions, raising capital and carrying out capital markets activities. The Company operates through four segments: Private Markets, Public Markets, Capital Markets and Principal Activities. It operates and reports its combined credit and hedge funds businesses through the Public Markets segment. The Capital Markets segment consists primarily of its global capital markets business. Through its Principal Activities segment, the Company manages the firm’s assets and deploys capital.

Financial Engines Company Profile

Financial Engines, Inc. is a provider of independent, technology-enabled financial advisory services, discretionary portfolio management, personalized investment advice, financial and retirement income planning, and financial education and guidance. The Company offers personalized plans for saving, investing, and generating retirement income, as well as by providing assessments of retirement income needs and readiness. The Company’s advice and planning services cover employer-sponsored defined contribution (DC) accounts (401(k), 457, and 403(b) plans), individual retirement account (IRA) accounts, and taxable accounts. For individuals, the Company provides discretionary portfolio management, personalized investment advice, financial and retirement income planning, financial education and guidance. The Company maintains two types of relationships with individuals: DC plan participants in the workplace and Individuals outside the workplace.

Receive News & Stock Ratings for KKR & Co. L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for KKR & Co. L.P. and related stocks with our FREE daily email newsletter.