Head to Head Analysis: Kayne Anderson BDC (KBDC) versus Its Rivals

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

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 7.2% 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 & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Kayne Anderson BDC	$117.70 million	$77.07 million	8.81
Kayne Anderson BDC Competitors	$14.15 billion	$71.35 million	35.32

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.

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 Ratings

This is a breakdown of recent ratings and target prices for Kayne Anderson BDC and its rivals, 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	137	771	982	26	2.47

Kayne Anderson BDC currently has a consensus price target of $16.60, suggesting a potential upside of 4.70%. As a group, “Holding & other investment offices” companies have a potential upside of 23.54%. Given Kayne Anderson BDC’s rivals higher probable upside, analysts clearly believe Kayne Anderson BDC has less favorable growth aspects than its rivals.

Insider and Institutional 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 endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.