Kayne Anderson BDC (NYSE:KBDC – Get Free Report) and Medallion Financial (NASDAQ:MFIN – Get Free Report) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.
Dividends
Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 10.9%. Medallion Financial pays an annual dividend of $0.48 per share and has a dividend yield of 4.8%. Kayne Anderson BDC pays out 106.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Medallion Financial pays out 28.1% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Kayne Anderson BDC and Medallion Financial”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 | $213.11 million | 4.71 | $131.94 million | $1.51 | 9.73 |
| Medallion Financial | $229.57 million | 1.01 | $35.88 million | $1.71 | 5.81 |
Kayne Anderson BDC has higher earnings, but lower revenue than Medallion Financial. Medallion Financial is trading at a lower price-to-earnings ratio than Kayne Anderson BDC, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Kayne Anderson BDC has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Medallion Financial has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.
Institutional and Insider Ownership
40.6% of Medallion Financial shares are owned by institutional investors. 3.1% of Kayne Anderson BDC shares are owned by insiders. Comparatively, 24.6% of Medallion Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Kayne Anderson BDC and Medallion Financial, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kayne Anderson BDC | 0 | 1 | 3 | 0 | 2.75 |
| Medallion Financial | 0 | 1 | 1 | 1 | 3.00 |
Kayne Anderson BDC currently has a consensus target price of $15.75, indicating a potential upside of 7.24%. Medallion Financial has a consensus target price of $12.00, indicating a potential upside of 20.85%. Given Medallion Financial’s stronger consensus rating and higher possible upside, analysts plainly believe Medallion Financial is more favorable than Kayne Anderson BDC.
Profitability
This table compares Kayne Anderson BDC and Medallion Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kayne Anderson BDC | 46.55% | 10.40% | 5.44% |
| Medallion Financial | 12.12% | 9.40% | 1.55% |
Summary
Medallion Financial beats Kayne Anderson BDC on 9 of the 17 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 Medallion Financial
Medallion Financial Corp., together with its subsidiaries, operates as a specialty finance company in the United States. It operates in four segments: Recreation Lending, Home Improvement Lending, Commercial Lending, and Taxi Medallion Lending. The company offers loans that finance consumer purchases of recreational vehicles, boats, and other consumer recreational equipment; consumer financing for window, siding, and roof replacement, swimming pool installations, and other home improvement projects; senior and subordinated loans for the purchase of equipment and related assets necessary to open a new business, or purchase or improvement of an existing business; and taxi medallion loans to individuals and small to mid-size businesses. It also provides debt, mezzanine, and equity investment capital to companies in various commercial industries; and raises deposits and conducts other banking activities. Medallion Financial Corp. was incorporated in 1995 and is headquartered in New York City, New York.
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