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

Kayne Anderson BDC (NYSE:KBDC) is one of 32 public companies in the “FIN – SBIC&COMMRL” industry, but how does it contrast to its competitors? We will compare Kayne Anderson BDC to related companies based on the strength of its analyst recommendations, profitability, valuation, risk, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

25.5% of shares of all “FIN – SBIC&COMMRL” companies are owned by institutional investors. 3.2% of Kayne Anderson BDC shares are owned by company insiders. Comparatively, 4.6% of shares of all “FIN – SBIC&COMMRL” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

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, “FIN – SBIC&COMMRL” companies pay a dividend yield of 10.2% and pay out 118.7% 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	56.97%	11.36%	6.51%
Kayne Anderson BDC Competitors	29.58%	11.06%	4.69%

Earnings & 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	$213.11 million	$131.94 million	8.68
Kayne Anderson BDC Competitors	$306.47 million	$121.82 million	7.17

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

Analyst Recommendations

This is a breakdown of current ratings for Kayne Anderson BDC and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	2	2	0	2.50
Kayne Anderson BDC Competitors	183	1041	1018	16	2.38

Kayne Anderson BDC currently has a consensus price target of $16.38, indicating a potential upside of 4.83%. As a group, “FIN – SBIC&COMMRL” companies have a potential upside of 5.16%. Given Kayne Anderson BDC’s competitors higher possible upside, analysts plainly believe Kayne Anderson BDC has less favorable growth aspects than its competitors.

Summary

Kayne Anderson BDC beats its competitors on 9 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.