Rand Capital (NASDAQ:RAND – Get Free Report) and KKR & Co. Inc. (NYSE:KKR – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Profitability
This table compares Rand Capital and KKR & Co. Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rand Capital | -2.67% | 5.47% | 5.23% |
| KKR & Co. Inc. | 14.41% | 5.88% | 1.07% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Rand Capital and KKR & Co. Inc., as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rand Capital | 1 | 0 | 0 | 0 | 1.00 |
| KKR & Co. Inc. | 0 | 3 | 12 | 0 | 2.80 |
Dividends
Rand Capital pays an annual dividend of $1.16 per share and has a dividend yield of 11.4%. KKR & Co. Inc. pays an annual dividend of $0.78 per share and has a dividend yield of 0.8%. Rand Capital pays out -2,900.0% of its earnings in the form of a dividend. KKR & Co. Inc. pays out 24.8% 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. Inc. has increased its dividend for 5 consecutive years. Rand Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
76.3% of KKR & Co. Inc. shares are owned by institutional investors. 68.2% of Rand Capital shares are owned by insiders. Comparatively, 23.2% of KKR & Co. Inc. shares are owned 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.
Volatility & Risk
Rand Capital has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, KKR & Co. Inc. has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.
Valuation & Earnings
This table compares Rand Capital and KKR & Co. Inc.”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rand Capital | $6.47 million | 4.68 | -$8.04 million | ($0.04) | -255.00 |
| KKR & Co. Inc. | $19.46 billion | 4.51 | $2.37 billion | $3.14 | 31.12 |
KKR & Co. Inc. has higher revenue and earnings than Rand Capital. Rand Capital 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.
Summary
KKR & Co. Inc. beats Rand Capital on 12 of the 17 factors compared between the two stocks.
About Rand Capital
Rand Capital Corporation is a business development company specializing in subordinated debt with warrants or preferred equity and venture capital investments. Within private equity, the firm specializing in capital growth and lower middle market investments. Within venture capital, it specializing in early to late-stage private businesses. It does not prefer to invest in real estate sector. It prefers to invest in software, professional services, manufacturing, consumer, healthcare, automotive and public d stocks. It prefers to invest in East or Midwest U.S. operations sectors. It typically invests between $0.75 million and $5 million with initial target size of $1.5 million. It seeks to invest in companies having more than $2 million in revenue or having excess of $1.5 million and up to $5 million in EBITDA. It prefers to be a minority stake and seeks to take a Board seat in its portfolio companies. It typically holds its investments for a period up to five years.
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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