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

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

Profitability

This table compares Kayne Anderson BDC and its rivals’ 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%

Analyst Recommendations

This is a summary of current recommendations and price targets for Kayne Anderson BDC and its rivals, as provided 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	773	983	27	2.47

Kayne Anderson BDC currently has a consensus target price of $16.60, suggesting a potential upside of 5.70%. As a group, “Holding & other investment offices” companies have a potential upside of 27.63%. Given Kayne Anderson BDC’s rivals higher probable upside, analysts plainly believe Kayne Anderson BDC has less favorable growth aspects than its rivals.

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

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 10.2%. 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 7.2% 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 rivals, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Kayne Anderson BDC and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kayne Anderson BDC	$117.70 million	$77.07 million	8.73
Kayne Anderson BDC Competitors	$14.15 billion	$71.35 million	35.18

Kayne Anderson BDC’s rivals have higher revenue, but lower earnings than Kayne Anderson BDC. Kayne Anderson BDC 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.

Summary

Kayne Anderson BDC beats its rivals 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.