Financial Survey: Invent Ventures (OTCMKTS:IDEA) and FS KKR Capital (NYSE:FSK)

Invent Ventures (OTCMKTS:IDEA) and FS KKR Capital (NYSE:FSK) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, valuation, dividends, institutional ownership and earnings.

Risk and Volatility

Invent Ventures has a beta of -49.63, suggesting that its share price is 5,063% less volatile than the S&P 500. Comparatively, FS KKR Capital has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

36.3% of FS KKR Capital shares are held by institutional investors. 19.4% of Invent Ventures shares are held by company insiders. Comparatively, 0.2% of FS KKR Capital shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Invent Ventures and FS KKR Capital”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Invent Ventures	$790,000.00	1.20	$710,000.00	N/A	N/A
FS KKR Capital	$1.72 billion	N/A	$585.00 million	$1.90	11.27

FS KKR Capital has higher revenue and earnings than Invent Ventures.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Invent Ventures and FS KKR Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Invent Ventures	0	0	0	0	0.00
FS KKR Capital	1	5	0	0	1.83

FS KKR Capital has a consensus target price of $19.50, indicating a potential downside of 8.94%. Given FS KKR Capital’s stronger consensus rating and higher possible upside, analysts clearly believe FS KKR Capital is more favorable than Invent Ventures.

Profitability

This table compares Invent Ventures and FS KKR Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Invent Ventures	91.12%	N/A	N/A
FS KKR Capital	31.53%	11.78%	5.27%

Summary

FS KKR Capital beats Invent Ventures on 8 of the 10 factors compared between the two stocks.

About Invent Ventures

Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.

About FS KKR Capital

FS KKR Capital Corp. is a business development company specializing in investments in debt securities. It provides customized credit solutions to private middle market U.S. companies. It invest primarily in the senior secured debt and, to a lesser extent, the subordinated debt of private middle market U.S. companies. It seeks to purchase interests in loans through secondary market transactions or directly from the target companies as primary market investments. It also seeks to invest in first lien senior secured loans, second lien secured loans and, to a lesser extent, subordinated loans, or mezzanine loans. In connection with the debt investments, the firm also receives equity interests such as warrants or options as additional consideration. It also seek to purchase minority interests in the form of common or preferred equity in our target companies, either in conjunction with one of the debt investments or through a co-investment with a financial sponsor. Additionally, on an opportunistic basis, the fund may also invest in corporate bonds and similar debt securities. The fund does not seek to invest in start-up companies, turnaround situations, or companies with speculative business plans. It seeks to invest in small and middle-market companies based in United States. The fund seeks to invest in firms with annual revenue between $10 million to $2.5 billion. It focus on providing customized one-stop credit solutions to private upper middle market companies with annual EBITDA of $50 million to $100 million at the time of investment. It seeks to exit from securities by selling them in a privately negotiated over- the- counter market. For any investments that are not able to be sold within the secondary market, the firm seeks to exit such investments through repayment, an initial public offering of equity securities, merger, sale or recapitalization.