WallStSmart

Franklin Resources Inc (BEN)vsKKR & Co LP (KKR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR & Co LP generates 190% more annual revenue ($25.65B vs $8.85B). KKR leads profitability with a 9.2% profit margin vs 7.0%. BEN appears more attractively valued with a PEG of 0.32. KKR earns a higher WallStSmart Score of 65/100 (C+).

BEN

Buy

64

out of 100

Grade: C+

Growth: 6.0Profit: 5.0Value: 10.0Quality: 6.3
Piotroski: 4/9Altman Z: 1.45

KKR

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 6.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BENUndervalued (+45.5%)

Margin of Safety

+45.5%

Fair Value

$50.54

Current Price

$23.89

$26.65 discount

UndervaluedFair: $50.54Overvalued
KKRSignificantly Overvalued (-560.3%)

Margin of Safety

-560.3%

Fair Value

$15.91

Current Price

$88.91

$73.00 premium

UndervaluedFair: $15.91Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BEN3 strengths · Avg: 10.0/10
PEG RatioValuation
0.3210/10

Growing faster than its price suggests

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

EPS GrowthGrowth
60.6%10/10

Earnings expanding 60.6% YoY

KKR6 strengths · Avg: 9.2/10
PEG RatioValuation
0.3910/10

Growing faster than its price suggests

Operating MarginProfitability
33.0%10/10

Strong operational efficiency at 33.0%

Revenue GrowthGrowth
76.3%10/10

Revenue surging 76.3% year-over-year

Market CapQuality
$84.19B9/10

Large-cap with strong market position

Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$2.27B8/10

Generating 2.3B in free cash flow

Areas to Watch

BEN4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
3.4%4/10

3.4% revenue growth

Return on EquityProfitability
4.5%3/10

ROE of 4.5% — below average capital efficiency

Profit MarginProfitability
7.0%3/10

7.0% margin — thin

Free Cash FlowQuality
$-264.40M2/10

Negative free cash flow — burning cash

KKR2 concerns · Avg: 3.0/10
P/E RatioValuation
38.9x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-2.2%2/10

Earnings declined 2.2%

Comparative Analysis Report

WallStSmart Research

Bull Case : BEN

The strongest argument for BEN centers on PEG Ratio, Price/Book, EPS Growth. PEG of 0.32 suggests the stock is reasonably priced for its growth.

Bull Case : KKR

The strongest argument for KKR centers on PEG Ratio, Operating Margin, Revenue Growth. Revenue growth of 76.3% demonstrates continued momentum. PEG of 0.39 suggests the stock is reasonably priced for its growth.

Bear Case : BEN

The primary concerns for BEN are Revenue Growth, Return on Equity, Profit Margin.

Bear Case : KKR

The primary concerns for KKR are P/E Ratio, EPS Growth.

Key Dynamics to Monitor

BEN profiles as a value stock while KKR is a hypergrowth play — different risk/reward profiles.

KKR carries more volatility with a beta of 2.01 — expect wider price swings.

KKR is growing revenue faster at 76.3% — sustainability is the question.

KKR generates stronger free cash flow (2.3B), providing more financial flexibility.

Bottom Line

KKR scores higher overall (65/100 vs 64/100) and 76.3% revenue growth. BEN offers better value entry with a 45.5% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Franklin Resources Inc

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Franklin Resources Inc. is an American multinational holding company that, together with its subsidiaries, is referred to as Franklin Templeton; it is a global investment firm founded in New York City in 1947 as Franklin Distributors, Inc.

KKR & Co LP

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

KKR & Co. LP is a leading global investment firm established in 1976, recognized for its expertise in managing a diversified portfolio across private equity, credit, and real assets. With a strong emphasis on innovative investment strategies and operational excellence, KKR adeptly identifies and leverages complex market opportunities to generate sustainable long-term value. The firm's profound industry knowledge and extensive global network contribute significantly to the growth of its portfolio companies. Additionally, KKR is committed to sustainable investing, actively integrating environmental, social, and governance (ESG) considerations into its strategies, thereby reinforcing its dedication to delivering robust performance for its investors while promoting responsible growth in the financial markets.

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