Kayne Anderson BDC (KBDC) vs. Its Rivals Critical Comparison

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 companies based on the strength of its dividends, risk, valuation, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Kayne Anderson BDC and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	2	3	0	2.60
Kayne Anderson BDC Competitors	138	771	983	26	2.47

Kayne Anderson BDC currently has a consensus target price of $16.60, suggesting a potential upside of 4.60%. As a group, “Holding & other investment offices” companies have a potential upside of 25.35%. Given Kayne Anderson BDC’s competitors higher possible upside, analysts clearly believe Kayne Anderson BDC has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Kayne Anderson BDC	$117.70 million	$77.07 million	8.82
Kayne Anderson BDC Competitors	$14.15 billion	$71.35 million	35.31

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.

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%

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 10.1%. 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.

Summary

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

Kayne Anderson BDC Company Profile

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.