Critical Analysis: Kinnevik (KNVKF) and Its Rivals

Profitability

This table compares Kinnevik and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kinnevik	N/A	50.29%	48.53%
Kinnevik Competitors	-379.73%	-25.69%	-7.38%

Insider and Institutional Ownership

42.4% of shares of all “Financial Services” companies are owned by institutional investors. 21.8% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Kinnevik and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kinnevik	N/A	$4.39 billion	0.10
Kinnevik Competitors	$6.50 billion	$1.06 billion	14.26

Kinnevik’s rivals have higher revenue, but lower earnings than Kinnevik. Kinnevik is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

About Kinnevik

Kinnevik AB formerly known as Investment AB Kinnevik, is a venture capital firm specializing in investments in growth capital. It prefers to invest in digital consumer business, education, communication, e-commerce and marketplaces, entertainment, healthcare, and financial services but may also invest in other areas. The firm invests worldwide, especially in Europe with a focus on the Nordics, Latin America, Asia, Australia, Africa, and North America. The firm looks for disruptive, technology-enabled and value-added consumer services in developed and emerging markets. It takes an active role on the boards of its subsidiaries and associated companies. It acts as a long-term lead shareholder in large listed entities. Kinnevik AB was founded in 1936 and is based in Stockholm, Sweden.