WallStSmart

KKR & Co LP (KKR)vsStellus Capital Investment (SCM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR & Co LP generates 25014% more annual revenue ($25.65B vs $102.14M). SCM leads profitability with a 26.5% profit margin vs 9.2%. SCM trades at a lower P/E of 8.7x. 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

SCM

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 7.5Value: 5.7Quality: 6.3
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

KKRSignificantly Overvalued (-560.3%)

Margin of Safety

-560.3%

Fair Value

$15.91

Current Price

$90.00

$74.09 premium

UndervaluedFair: $15.91Overvalued
SCMSignificantly Overvalued (-55.3%)

Margin of Safety

-55.3%

Fair Value

$7.41

Current Price

$9.16

$1.75 premium

UndervaluedFair: $7.41Overvalued

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
$83.35B9/10

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

SCM4 strengths · Avg: 9.8/10
P/E RatioValuation
8.7x10/10

Attractively priced relative to earnings

Price/BookValuation
0.7x10/10

Reasonable price relative to book value

Operating MarginProfitability
56.6%10/10

Strong operational efficiency at 56.6%

Profit MarginProfitability
26.5%9/10

Keeps 27 of every $100 in revenue as profit

Areas to Watch

KKR2 concerns · Avg: 3.0/10
P/E RatioValuation
38.5x4/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-2.2%2/10

Earnings declined 2.2%

SCM4 concerns · Avg: 3.0/10
Market CapQuality
$275.00M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.3%3/10

ROE of 7.3% — below average capital efficiency

Debt/EquityHealth
1.673/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 : SCM

The strongest argument for SCM centers on P/E Ratio, Price/Book, Operating Margin. Profitability is solid with margins at 26.5% and operating margin at 56.6%.

Bear Case : KKR

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

Bear Case : SCM

The primary concerns for SCM are Market Cap, Return on Equity, Debt/Equity. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

KKR profiles as a hypergrowth stock while SCM 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 47/100) and 76.3% revenue growth. 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.

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.

Stellus Capital Investment

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Stellus Capital Investment Corporation (SCM) operates as a prominent business development company focused on providing tailored debt and equity financing solutions for private middle-market enterprises. With a strong investment management foundation, Stellus aims to generate attractive risk-adjusted returns while ensuring capital preservation for its shareholders. The company's diversified portfolio includes senior secured loans, subordinated debt, and equity investments across multiple sectors, positioning it effectively to capitalize on growth opportunities in an evolving market landscape. Stellus is committed to consistent income generation and prudent risk management, making it a compelling choice for institutional investors seeking resilient investment strategies.

Visit Website →

Want to dig deeper into these stocks?