UBS Group (NYSE:UBS) versus Kayne Anderson BDC (NYSE:KBDC) Head to Head Comparison

Kayne Anderson BDC (NYSE:KBDC) and UBS Group (NYSE:UBS) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Kayne Anderson BDC and UBS Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kayne Anderson BDC	$235.82 million	3.52	$93.71 million	$1.09	11.55
UBS Group	$76.12 billion	1.98	$7.77 billion	$2.94	16.37

UBS Group has higher revenue and earnings than Kayne Anderson BDC. Kayne Anderson BDC is trading at a lower price-to-earnings ratio than UBS Group, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Kayne Anderson BDC and UBS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	1	2	2	0	2.20
UBS Group	2	5	4	0	2.18

Kayne Anderson BDC currently has a consensus price target of $14.50, suggesting a potential upside of 15.22%. UBS Group has a consensus price target of $60.30, suggesting a potential upside of 25.26%. Given UBS Group’s higher possible upside, analysts plainly believe UBS Group is more favorable than Kayne Anderson BDC.

Volatility and Risk

Kayne Anderson BDC has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 12.7%. UBS Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. Kayne Anderson BDC pays out 146.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UBS Group pays out 12.2% of its earnings in the form of a dividend. UBS Group has raised its dividend for 5 consecutive years.

Profitability

This table compares Kayne Anderson BDC and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kayne Anderson BDC	31.54%	10.63%	5.06%
UBS Group	13.10%	10.50%	0.57%

Summary

UBS Group beats Kayne Anderson BDC on 9 of the 15 factors compared between the two stocks.

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.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.