WallStSmart

KKR & Co LP (KKR)vsSaratoga Investment Corp (SAR)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR & Co LP generates 20277% more annual revenue ($25.65B vs $125.89M). SAR leads profitability with a 30.6% profit margin vs 9.2%. SAR trades at a lower P/E of 9.2x. KKR earns a higher WallStSmart Score of 65/100 (C+).

KKR

Buy

65

out of 100

Grade: C+

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

SAR

Buy

54

out of 100

Grade: C-

Growth: 6.0Profit: 8.0Value: 8.3Quality: 7.8
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KKRSignificantly Overvalued (-560.3%)

Margin of Safety

-560.3%

Fair Value

$15.91

Current Price

$88.91

$73.00 premium

UndervaluedFair: $15.91Overvalued
SARUndervalued (+71.2%)

Margin of Safety

+71.2%

Fair Value

$79.57

Current Price

$22.17

$57.40 discount

UndervaluedFair: $79.57Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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

SAR4 strengths · Avg: 10.0/10
P/E RatioValuation
9.2x10/10

Attractively priced relative to earnings

Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Profit MarginProfitability
30.6%10/10

Keeps 31 of every $100 in revenue as profit

Operating MarginProfitability
67.9%10/10

Strong operational efficiency at 67.9%

Areas to Watch

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%

SAR3 concerns · Avg: 2.7/10
Market CapQuality
$360.01M3/10

Smaller company, higher risk/reward

Debt/EquityHealth
1.853/10

Elevated debt levels

Revenue GrowthGrowth
-11.8%2/10

Revenue declined 11.8%

Comparative Analysis Report

WallStSmart Research

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.

Bull Case : SAR

The strongest argument for SAR centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 30.6% and operating margin at 67.9%.

Bear Case : KKR

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

Bear Case : SAR

The primary concerns for SAR are Market Cap, Debt/Equity, Revenue Growth. Debt-to-equity of 1.85 is elevated, increasing financial risk.

Key Dynamics to Monitor

KKR profiles as a hypergrowth stock while SAR is a declining 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 54/100) and 76.3% revenue growth. SAR offers better value entry with a 71.2% 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.

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.

Saratoga Investment Corp

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Saratoga Investment Corp (SAR) is a publicly traded business development company that specializes in providing flexible debt and equity capital to middle-market firms across various sectors, including healthcare, technology, and consumer products. With a disciplined investment strategy, Saratoga emphasizes thorough due diligence and robust risk management practices, aiming to enhance shareholder returns while ensuring capital preservation. The company's commitment to active portfolio management and its history of consistent dividend distributions make it an attractive choice for institutional investors looking to diversify their investments within the alternative asset space.

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