WallStSmart

KKR & Co LP (KKR)vsWestern Asset Diversified Income Fund (WDI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

KKR leads profitability with a 9.2% profit margin vs 0.0%. WDI trades at a lower P/E of 9.5x. 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

WDI

Avoid

29

out of 100

Grade: F

Growth: 4.3Profit: 3.5Value: 5.7Quality: 5.0
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
WDISignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$9.38

Current Price

$13.19

$3.81 premium

UndervaluedFair: $9.38Overvalued

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

WDI1 strengths · Avg: 10.0/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

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%

WDI4 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
$682.64M3/10

Smaller company, higher risk/reward

Profit MarginProfitability
0.0%3/10

0.0% margin — thin

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 : WDI

The strongest argument for WDI centers on P/E Ratio.

Bear Case : KKR

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

Bear Case : WDI

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

Key Dynamics to Monitor

KKR profiles as a hypergrowth stock while WDI is a value 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 29/100) 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.

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.

Western Asset Diversified Income Fund

FINANCIAL SERVICES · ASSET MANAGEMENT · USA

Western Asset Diversified Income Fund (WDI) is a strategically managed closed-end fund focused on providing a high level of current income through a well-diversified portfolio of fixed-income securities. Oversight by Western Asset Management Company enables WDI to invest across a wide array of debt instruments, including U.S. and international investment-grade bonds, high-yield securities, and other fixed-income assets. With a disciplined investment approach and strong risk management practices, WDI aims to capitalize on diverse market opportunities, making it an attractive option for institutional investors seeking to enhance fixed-income allocations while generating dependable income streams.

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