KKR vs. T. Rowe Price: Which Money Manager Stock Is a Better Buy in 2026?

Investing in companies that invest other people’s money can be a shrewd move. Investors comparing a private equity giant against a mutual fund titan face two very different paths. This article evaluates KKR & Co., Inc. (NYSE:KKR) and T. Rowe Price Group (NASDAQ:TROW) to find the better buy.

KKR focuses on alternative investments like private equity and infrastructure, which are typically off-limits to small investors except through these public shares. T. Rowe Price Group specializes in active management of public stocks and bonds, particularly for retirement plan participants and individual wealth management clients. Both are heavyweights in the investment world, but they offer exposure to different types of market activity and client demographics.

The case for KKR & Co.

KKR operates as a global investment firm specializing in alternative asset management and capital markets solutions across private equity, infrastructure, real estate, and credit. It serves a diverse client base, including institutional investors, global wealth clients, and family offices seeking specialized strategies not found in traditional public markets. By managing these unique assets, the firm aims to provide diversified returns that help investors navigate complex global economic shifts.

During FY 2025, the firm’s total revenue reached nearly $19.3 billion, a decrease of approximately 11% from the prior fiscal year. With lower top-line results, the company also reported net income of nearly $2.3 billion, resulting in a net margin of 12.3% for the period, down from about $3.1 billion in 2024. This highlights the business’s sensitivity to transaction volumes and market timing during specific economic cycles.

Assets under management (AUM) for KKR showed a positive trend, however. AUM rose 17% year-over-year to $744 billion. With money managers, AUM is a crucial statistic to watch, since it’s the base on which they earn future fees.

The case for T. Rowe Price Group

T. Rowe Price Group provides a broad range of investment management services for individual investors, financial advisors, and large retirement plan sponsors. It specializes in active management across equity and fixed income markets and remains a prominent name among financial stocks globally. Retirement assets represent a core part of its business model, accounting for roughly 67% of its total assets under management as of its latest reporting in early 2026.

In FY 2025, the firm generated revenue of nearly $7.3 billion, representing approximately 3% growth over the prior fiscal year. The company reported net income of close to $2.2 billion, resulting in a robust net margin of 28.5% through efficient management of its fund operations. This level of profitability reflects the company's ability to maintain high service levels while navigating the demands of a changing investment landscape.

T. Rowe Price Group’s AUM ended 2025 at nearly $1.77 trillion, up 8.3% from its 2024 level.

Risk profile comparison

KKR faces significant risks from shifting market conditions and interest rate changes, which can directly affect the valuation and exit potential of its private holdings. The business is also highly dependent on retaining key investment professionals, whose departures could harm client relationships and the firm's ability to raise new capital. Furthermore, the firm must manage liquidity carefully to satisfy redemption requests from its various insurance and investment vehicles while navigating complex global regulations.

T. Rowe Price Group operates in a competitive environment where passive investment products from firms like BlackRock (NYSE:BLK) and State Street (NYSE:STT) continue to gain significant market share. This competition often leads to fee compression, which can limit the revenue growth potential of active management firms even when markets are performing well. Additionally, any significant damage to the firm's reputation from service errors or investment underperformance could lead to a rapid loss of client assets.

Valuation comparison

T. Rowe Price Group appears to be the more value-oriented choice as it trades at lower multiples than KKR. A Forward P/E measures a stock price against future earnings estimates, while a P/S ratio measures price against total revenue.

Sector benchmark uses the SPDR XLF sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?

As the saying goes, you have to have money to make money. KKR & Co., Inc. and T. Rowe Price Group have the money — assets under management — in spades. As a private equity specialist, KKR has a reputation for historically making huge profits, while T. Rowe Price is best known as one of the larger players in the relatively sleepy world of managing 401 (k) accounts.

Yet KKR’s reputation is running headlong into the evolving reality of PE: failure to outperform the market means KKR’s core clients, institutions like pension funds, insurance companies, and the ultrawealthy, are quick to pull their money to avoid paying PE’s outsize fees.

T. Rowe Price Group’s focus on mutual funds, ETFs, and retirement account management for Americans (92% of its assets are owned by U.S. citizens) means it collects fewer fees per dollar than KKR. But it’s a more reliable business, in which customers are less likely to quickly withdraw their money after a bad quarter and more likely to view the assets they entrust to T. Rowe Price as very long-term investments.

While managing retirement assets is a highly competitive business with constant pressure on money manager fees, T. Rowe Price is making strides in two areas where it has lagged competitors. One is introducing its own ETFs, which incur additional fees, while broadening offerings for customers. Last quarter, the company introduced two more ERTFs, bringing its offerings to 32 funds with $25 billion in assets. Management is planning to expand its ETFs into Europe later this year. The business is also seeing strong demand for separately managed accounts (SMAs), which are bespoke investment vehicles used by the very wealthy rather than buying mutual funds or ETFs.

Given that TROW trades below the industry average P/E of 16.6, its 11.2 P/E makes it an attractive way to invest in money managers this year.

Brendan Coffey has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends KKR and T. Rowe Price Group. The Motley Fool has a disclosure policy.