Financial Survey: Kayne Anderson BDC (KBDC) versus Its Competitors

Kayne Anderson BDC (NYSE:KBDC) is one of 695 publicly-traded companies in the “Holding & other investment offices” industry, but how does it weigh in compared to its competitors? We will compare Kayne Anderson BDC to related businesses based on the strength of its analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Institutional & Insider Ownership

54.6% of shares of all “Holding & other investment offices” companies are owned by institutional investors. 3.1% of Kayne Anderson BDC shares are owned by company insiders. Comparatively, 27.9% of shares of all “Holding & other investment offices” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Kayne Anderson BDC and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	2	3	0	2.60
Kayne Anderson BDC Competitors	134	768	979	26	2.47

Kayne Anderson BDC presently has a consensus price target of $16.60, suggesting a potential upside of 1.47%. As a group, “Holding & other investment offices” companies have a potential upside of 21.28%. Given Kayne Anderson BDC’s competitors higher possible upside, analysts plainly believe Kayne Anderson BDC has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Kayne Anderson BDC and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kayne Anderson BDC	$122.29 million	$77.07 million	9.09
Kayne Anderson BDC Competitors	$14.15 billion	$71.35 million	35.24

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

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 9.8%. Kayne Anderson BDC pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Holding & other investment offices” companies pay a dividend yield of 7.1% and pay out 92.5% of their earnings in the form of a dividend. Kayne Anderson BDC is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

This table compares Kayne Anderson BDC and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kayne Anderson BDC	59.80%	12.65%	6.77%
Kayne Anderson BDC Competitors	11.22%	-48.18%	1.91%

Summary

Kayne Anderson BDC beats its competitors on 8 of the 14 factors compared.

About Kayne Anderson BDC

Kayne Anderson BDC Inc. is a business development company which invests primarily in first lien senior secured loans, with a secondary focus on unitranche and split-lien loans to middle market companies. Kayne Anderson BDC Inc. is based in CHICAGO.