AllianceBernstein Holding L.P. (AB) vs FS KKR Capital Corp. (FSK)

AllianceBernstein Holding L.P. and FS KKR Capital Corp. are both Asset Management companies. AllianceBernstein Holding L.P. and FS KKR Capital Corp. are of similar size ($3.3B and $3.1B). FS KKR Capital Corp. has negative trailing earnings, so its P/E is not meaningful; AllianceBernstein Holding L.P. trades at 10.6×. AllianceBernstein Holding L.P. has the higher net margin (0.00% vs −28.5%) and the lower return on invested capital (0.00% vs 2.98%). Both pay a dividend; FS KKR Capital Corp. yields more (12.7% vs 9.24%). Across the 13 metrics below, AllianceBernstein Holding L.P. leads on 7 and FS KKR Capital Corp. on 6.

Valuation

Metric AB FSK Asset Management median
P/E 10.58 n/m 14.62
P/S n/m 2.40 2.97
P/B 2.68 0.62 0.94
Price to free cash flow 10.63 1.64 8.93
EV/EBITDA n/m 9.43 10.32
EV/Sales n/m 7.24 5.72
Earnings yield 9.45% (12.00%) 4.53%
Free cash flow yield 9.41% 61.03% 4.65%

Profitability

Metric AB FSK Asset Management median
Gross margin — 100.00% 100.00%
Operating margin — 75.06% 33.03%
Net margin 0.00% (28.52%) 13.53%
Free cash flow margin 0.00% 146.24% 12.44%
Return on equity 19.37% (6.66%) 4.83%
Return on assets 19.36% (2.82%) 1.57%
Return on invested capital 0.00% 2.98% 3.04%

Growth

Metric AB FSK Asset Management median
Revenue growth (TTM) — (20.11%) 6.97%
EPS growth (last fiscal year) (19.95%) (98.09%) —
Revenue growth, 5-year CAGR — 18.91% 12.13%
Net income growth, 5-year CAGR 1.42% 0.00% 0.00%

Health

Metric AB FSK Asset Management median
Debt to equity 0.00 1.23 0.42
Current ratio — 2.28 1.28
Net debt to EBITDA — 6.40 1.06

Dividend

Metric AB FSK Asset Management median
Dividend yield 9.24% 12.71% 6.92%
Payout ratio — 2.60 0.77

Size

Metric AB FSK Asset Management median
Market cap 3.30b 3.05b 721.34m

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