WallStSmart

Ellington Residential Mortgage (EARN)vsKKR & Co LP (KKR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR & Co LP generates 71365% more annual revenue ($25.65B vs $35.89M). KKR leads profitability with a 9.2% profit margin vs -14.6%. EARN trades at a lower P/E of 15.5x. KKR earns a higher WallStSmart Score of 65/100 (C+).

EARN

Hold

37

out of 100

Grade: F

Growth: 6.7Profit: 4.0Value: 8.3Quality: 5.0

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

EARNUndervalued (+48.4%)

Margin of Safety

+48.4%

Fair Value

$10.19

Current Price

$4.40

$5.79 discount

UndervaluedFair: $10.19Overvalued
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

EARN3 strengths · Avg: 9.3/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
68.4%10/10

Strong operational efficiency at 68.4%

P/E RatioValuation
15.5x8/10

Attractively priced relative to earnings

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

EARN4 concerns · Avg: 2.0/10
Market CapQuality
$163.06M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-2.8%2/10

ROE of -2.8% — below average capital efficiency

Revenue GrowthGrowth
-61.0%2/10

Revenue declined 61.0%

Profit MarginProfitability
-14.6%1/10

Currently unprofitable

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 : EARN

The strongest argument for EARN centers on Price/Book, Operating Margin, P/E Ratio.

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 : EARN

The primary concerns for EARN are Market Cap, Return on Equity, Revenue Growth.

Bear Case : KKR

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

Key Dynamics to Monitor

EARN profiles as a turnaround 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.

Monitor ASSET MANAGEMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

KKR scores higher overall (65/100 vs 37/100) and 76.3% revenue growth. EARN offers better value entry with a 48.4% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

Ellington Residential Mortgage

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Ellington Residential Mortgage REIT, a real estate investment trust, specializes in acquiring, investing, and managing residential and real estate-related mortgage assets. The company is headquartered in Old Greenwich, Connecticut.

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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