Blackstone Inc.

(New York Stock Exchange)
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Somewhat Bullish +50

Blackstone (BX) vs KKR (KKR): Which is a Better Stock to Buy?

Market commentary AI-generated analysis

πŸ“Š Blackstone converts 54.36% of revenue into operating profit compared to KKR's 20.65%, reflecting a superior fee-based business model.

πŸš€ Blackstone grew revenue by 28.60% in the most recent quarter, significantly outpacing KKR's 7.80% growth rate.

πŸ’° Blackstone trades at 15.90 times next year's estimates and 9.93 times book value, while KKR is cheaper at 12.99x forward earnings.

πŸ“‰ Both stocks have fallen heavily over the last twelve months, with Blackstone down 33.04% and KKR down 28.83% despite market gains.

πŸ’΅ Blackstone pays a 4.66% dividend yield to shareholders, whereas KKR pays only 0.8% and reinvests capital into insurance assets.

🏦 Blackstone maintains an asset-light balance sheet with $15.3 billion in debt against $15.48 billion in revenue, unlike KKR's heavy insurance exposure.

πŸ“‰ Hedge fund ownership of Blackstone decreased from 84 holders valued at $2.02 billion to 76 holders valued at $1.77 billion in Q2 2026.

⚠️ Blackstone faces the risk that its high valuation leaves little room for error if private market fundraising continues to slow down.

Bullish Signals
  • Blackstone demonstrates exceptional profitability with a 54.36% operating margin, significantly higher than KKR's 20.65%.
  • The company achieved robust revenue growth of 28.60% in the most recent quarter, driven by its recurring fee model on committed capital.
  • Blackstone offers a 4.66% dividend yield to shareholders, providing income support while waiting for fundraising conditions to improve.
  • The firm maintains a high return on equity of 31.37%, indicating efficient use of shareholder capital compared to KKR's 7.28%.
Risk Factors
  • Blackstone's stock has fallen 33.04% over the last twelve months, reflecting market concerns about slowing private equity fundraising.
  • The company trades at a premium valuation of 9.93 times book value, which leaves little margin for error if growth slows or fundraising dries up.
Full Analysis
Blackstone Inc. (NYSE:BX) and KKR & Co. Inc. (NYSE:KKR) are being compared as alternative asset managers, with Blackstone demonstrating superior profitability metrics despite a recent stock decline of 33.04% over twelve months. Blackstone converts 54.36% of revenue into operating profit compared to KKR's 20.65%, driven by an asset-light model that collects management fees on committed capital rather than relying on lower-return spread income from insurance assets. The article highlights significant differences in growth and valuation between the two firms. Blackstone achieved a 28.60% revenue growth in the most recent quarter against KKR's 7.80%, while also boasting a return on equity of 31.37% versus KKR's 7.28%. However, Blackstone trades at a premium with a forward multiple of 15.90x and a price-to-book ratio of 9.93x, whereas KKR is cheaper at 12.99x forward earnings and 3.06x book value. Blackstone offers shareholders a 4.66% yield while maintaining high-quality fee-based economics, though it faces risks related to slowing private market fundraising which has already impacted its share price. KKR reinvests capital into insurance assets but accepts lower returns and minimal dividend yield in exchange for a lower valuation. The analysis concludes that Blackstone is the higher-quality business with sustainable growth, while KKR represents a lower-quality option purchased at a discount.