Kayne Anderson BDC (KBDC) & Its Peers Critical Contrast

Kayne Anderson BDC (NYSE:KBDC) is one of 1,743 publicly-traded companies in the “Capital Markets” industry, but how does it weigh in compared to its competitors? We will compare Kayne Anderson BDC to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 12.4%. Kayne Anderson BDC pays out 190.5% 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, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.2% of their earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and target prices for Kayne Anderson BDC and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	3	2	0	2.40
Kayne Anderson BDC Competitors	5565	20158	22503	642	2.37

Kayne Anderson BDC currently has a consensus target price of $13.75, indicating a potential upside of 6.83%. As a group, “Capital Markets” companies have a potential upside of 24.74%. Given Kayne Anderson BDC’s competitors higher possible upside, analysts plainly believe Kayne Anderson BDC has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

30.6% of shares of all “Capital Markets” companies are held by institutional investors. 2.9% of Kayne Anderson BDC shares are held by company insiders. Comparatively, 12.9% of shares of all “Capital Markets” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility & 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, Kayne Anderson BDC’s competitors have a beta of 0.79, suggesting that their average stock price is 21% less volatile than the S&P 500.

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	31.54%	10.63%	5.06%
Kayne Anderson BDC Competitors	318.48%	79.19%	3.72%

Valuation & Earnings

This table compares Kayne Anderson BDC and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kayne Anderson BDC	$235.82 million	$93.71 million	15.32
Kayne Anderson BDC Competitors	$2.39 billion	$398.52 million	17.65

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

Summary

Kayne Anderson BDC competitors beat Kayne Anderson BDC on 12 of the 15 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.