Head to Head Contrast: KKR & Co. Inc. (NYSE:KKR) & AFC Gamma (NASDAQ:AFCG)

AFC Gamma (NASDAQ:AFCG) and KKR & Co. Inc. (NYSE:KKR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, dividends and valuation.

Institutional and Insider Ownership

26.5% of AFC Gamma shares are held by institutional investors. Comparatively, 76.3% of KKR & Co. Inc. shares are held by institutional investors. 30.7% of AFC Gamma shares are held by insiders. Comparatively, 23.2% of KKR & Co. Inc. shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares AFC Gamma and KKR & Co. Inc.”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AFC Gamma	$31.32 million	2.36	-$20.67 million	$1.04	3.17
KKR & Co. Inc.	$19.46 billion	4.43	$2.37 billion	$3.43	28.20

KKR & Co. Inc. has higher revenue and earnings than AFC Gamma. AFC Gamma is trading at a lower price-to-earnings ratio than KKR & Co. Inc., indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

AFC Gamma has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, KKR & Co. Inc. has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500.

Dividends

AFC Gamma pays an annual dividend of $0.20 per share and has a dividend yield of 6.1%. KKR & Co. Inc. pays an annual dividend of $0.78 per share and has a dividend yield of 0.8%. AFC Gamma pays out 19.2% of its earnings in the form of a dividend. KKR & Co. Inc. pays out 22.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. KKR & Co. Inc. has raised its dividend for 5 consecutive years. AFC Gamma is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AFC Gamma and KKR & Co. Inc., as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AFC Gamma	1	1	0	0	1.50
KKR & Co. Inc.	0	4	17	0	2.81

KKR & Co. Inc. has a consensus price target of $123.32, suggesting a potential upside of 27.50%. Given KKR & Co. Inc.’s stronger consensus rating and higher possible upside, analysts plainly believe KKR & Co. Inc. is more favorable than AFC Gamma.

Profitability

This table compares AFC Gamma and KKR & Co. Inc.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AFC Gamma	71.50%	4.57%	2.31%
KKR & Co. Inc.	16.38%	6.33%	1.15%

Summary

KKR & Co. Inc. beats AFC Gamma on 12 of the 17 factors compared between the two stocks.

About AFC Gamma

AFC Gamma, Inc. is a specialty finance company focused primarily on providing institutional debt financing to businesses operating in the regulated cannabis industry. The company has historically targeted established cannabis operators and other participants in the industry that may have limited access to traditional bank financing. Its financing activities have included senior secured loans, mortgage-backed loans and other structured debt arrangements. Borrowers may use these funds to support the acquisition, development or expansion of cannabis cultivation, processing, manufacturing and retail facilities, as well as related working-capital and corporate needs.

About KKR & Co. Inc.

KKR & Co. Inc. is a global investment firm that manages alternative investment funds and other investment products. Its activities include private equity, credit, infrastructure and real estate investing, as well as insurance through its Global Atlantic business. The firm also provides capital markets services, including financing and strategic solutions for companies and other clients. KKR invests across multiple industries and serves clients and investors in markets around the world. Founded in 1976 by Henry Kravis, George Roberts and Jerome Kohlberg, KKR is led by co-chief executive officers Joseph Bae and Scott Nuttall.