Head-To-Head Analysis: SouthPeak Interactive (OTCMKTS:SOPK) & FS KKR Capital (NYSE:FSK)

SouthPeak Interactive (OTCMKTS:SOPK) 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 institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Earnings and Valuation

This table compares SouthPeak Interactive and FS KKR Capital”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthPeak Interactive	N/A	N/A	N/A	N/A	N/A
FS KKR Capital	$664.00 million	8.56	$696.00 million	$2.09	9.71

FS KKR Capital has higher revenue and earnings than SouthPeak Interactive.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
SouthPeak Interactive	N/A	N/A	N/A
FS KKR Capital	29.98%	12.31%	5.47%

Volatility and Risk

SouthPeak Interactive has a beta of 3.19, meaning that its stock price is 219% more volatile than the S&P 500. Comparatively, FS KKR Capital has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for SouthPeak Interactive and FS KKR Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthPeak Interactive	0	0	0	0	0.00
FS KKR Capital	1	4	0	0	1.80

FS KKR Capital has a consensus price target of $21.30, suggesting a potential upside of 5.00%. Given FS KKR Capital’s stronger consensus rating and higher possible upside, analysts plainly believe FS KKR Capital is more favorable than SouthPeak Interactive.

Insider & Institutional Ownership

36.3% of FS KKR Capital shares are owned by institutional investors. 45.6% of SouthPeak Interactive shares are owned by insiders. Comparatively, 0.3% of FS KKR Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

FS KKR Capital beats SouthPeak Interactive on 7 of the 9 factors compared between the two stocks.

About SouthPeak Interactive

SouthPeak Interactive Corporation develops, markets, and publishes interactive entertainment software. The company offers videogames for various gaming and entertainment hardware platforms, including home videogame consoles, such as Microsoft Xbox 360, Nintendo Wii, and Sony PS3 and PS2; for handheld platforms, including Nintendo DS, Nintendo DSi, Sony PlayStation Portable, Sony PSPgo, and Apple iPhone; for game applications for the Next Generation NVIDIA Tegra mobile processor, which is used in Droid phones and tablets; and for personal computers. It serves various customers ranging from casual players to hardcore gaming enthusiasts. The company sells its products to retailers and distributors in North America and the United Kingdom, and primarily to distributors in the rest of Europe, Australia, and Asia. SouthPeak Interactive Corporation was founded in 1996 and is based in Midlothian, Virginia.

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.