Head-To-Head Comparison: Kayne Anderson BDC (KBDC) vs. The Competition

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 peers? We will compare Kayne Anderson BDC to related companies based on the strength of its analyst recommendations, valuation, risk, institutional ownership, profitability, earnings and dividends.

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 peers, given its higher yield and lower payout ratio.

Profitability

This table compares Kayne Anderson BDC and its peers’ 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%

Valuation & Earnings

This table compares Kayne Anderson BDC and its peers 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	8.84
Kayne Anderson BDC Competitors	$14.15 billion	$71.35 million	38.26

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

Analyst Ratings

This is a breakdown of recent ratings for Kayne Anderson BDC and its peers, as provided 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	138	773	983	27	2.47

Kayne Anderson BDC currently has a consensus price target of $16.60, suggesting a potential upside of 4.27%. As a group, “Holding & other investment offices” companies have a potential upside of 26.41%. Given Kayne Anderson BDC’s peers higher possible upside, analysts clearly believe Kayne Anderson BDC has less favorable growth aspects than its peers.

Institutional & Insider Ownership

54.6% of shares of all “Holding & other investment offices” companies are held by institutional investors. 3.2% 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, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Kayne Anderson BDC beats its peers 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.