FS KKR Capital Corp. (FSK) vs GCM Grosvenor Inc. (GCMG)

FS KKR Capital Corp. and GCM Grosvenor Inc. are both Asset Management companies. FS KKR Capital Corp. is the larger, with a market value of $3.1B against $2.6B — 1.2× the size. FS KKR Capital Corp. has negative trailing earnings, so its P/E is not meaningful; GCM Grosvenor Inc. trades at 16.7×. FS KKR Capital Corp. grew revenue faster over the last twelve months: −20.1% against −22.4%. GCM Grosvenor Inc. has the higher net margin (0.00% vs −28.5%) and the higher return on invested capital (28.1% vs 2.98%). Both pay a dividend; FS KKR Capital Corp. yields more (12.7% vs 5.47%). Across the 22 metrics below, FS KKR Capital Corp. leads on 11 and GCM Grosvenor Inc. on 11.

Valuation

Metric FSK GCMG Asset Management median
P/E n/m 16.72 14.62
P/S 2.40 1.88 2.97
P/B 0.62 6.51 0.94
Price to free cash flow 1.64 4.27 8.93
EV/EBITDA 9.43 6.69 10.32
EV/Sales 7.24 2.41 5.72
Earnings yield (12.00%) 5.98% 4.53%
Free cash flow yield 61.03% 23.40% 4.65%

Profitability

Metric FSK GCMG Asset Management median
Gross margin 100.00% 0.00% 100.00%
Operating margin 75.06% 0.00% 33.03%
Net margin (28.52%) 0.00% 13.53%
Free cash flow margin 146.24% 0.00% 12.44%
Return on equity (6.66%) 87.47% 4.83%
Return on assets (2.82%) 6.77% 1.57%
Return on invested capital 2.98% 28.07% 3.04%

Growth

Metric FSK GCMG Asset Management median
Revenue growth (TTM) (20.11%) (22.39%) 6.97%
EPS growth (last fiscal year) (98.09%) 1,300.00% —
Revenue growth, 5-year CAGR 18.91% 3.69% 12.13%
Net income growth, 5-year CAGR 0.00% 16.13% 0.00%

Health

Metric FSK GCMG Asset Management median
Debt to equity 1.23 2.96 0.42
Current ratio 2.28 1.89 1.28
Net debt to EBITDA 6.40 1.42 1.06

Dividend

Metric FSK GCMG Asset Management median
Dividend yield 12.71% 5.47% 6.92%
Payout ratio 2.60 0.83 0.77

Size

Metric FSK GCMG Asset Management median
Market cap 3.05b 2.56b 721.34m

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