WallStSmart

FS Credit Opportunities Corp. (FSCO)vsKKR & Co LP (KKR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR leads profitability with a 9.2% profit margin vs 0.0%. FSCO trades at a lower P/E of 6.9x. KKR earns a higher WallStSmart Score of 65/100 (C+).

FSCO

Avoid

32

out of 100

Grade: F

Growth: 4.3Profit: 4.0Value: 6.3Quality: 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

FSCOOvervalued (-13.4%)

Margin of Safety

-13.4%

Fair Value

$5.24

Current Price

$5.28

$0.04 premium

UndervaluedFair: $5.24Overvalued
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

FSCO1 strengths · Avg: 10.0/10
P/E RatioValuation
6.9x10/10

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

FSCO4 concerns · Avg: 3.5/10
Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Market CapQuality
$1.07B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 : FSCO

The strongest argument for FSCO centers on 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 : FSCO

The primary concerns for FSCO are Revenue Growth, EPS Growth, Market Cap.

Bear Case : KKR

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

Key Dynamics to Monitor

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

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

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

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

Bottom Line

KKR scores higher overall (65/100 vs 32/100) and 76.3% revenue growth. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

FS Credit Opportunities Corp.

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

FS Credit Opportunities Corp. (FSCO) is a closed-end management investment company focused on providing institutional investors with exposure to a diversified portfolio of credit-related assets. The firm adopts a strategic investment approach across a range of debt instruments, including first and second lien loans, high-yield bonds, and specialty finance products, aimed at achieving attractive risk-adjusted returns. Leveraging a seasoned management team and a disciplined investment process, FSCO is adept at navigating complex credit markets to deliver consistent income and long-term capital appreciation. As a prominent player in the alternative investment sector, FSCO is positioned to capitalize on market dislocations while maintaining rigorous risk management practices.

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.

Want to dig deeper into these stocks?