Kayne Anderson BDC, Inc. (KBDC) vs Prospect Capital Corporation (PSEC)

Kayne Anderson BDC, Inc. and Prospect Capital Corporation are both Asset Management companies. Kayne Anderson BDC, Inc. is the larger, with a market value of $841.3M against $739.3M — 1.1× the size. Prospect Capital Corporation has negative trailing earnings, so its P/E is not meaningful; Kayne Anderson BDC, Inc. trades at 15.2×. Kayne Anderson BDC, Inc. grew revenue faster over the last twelve months: 4.24% against −6.93%. Kayne Anderson BDC, Inc. has the higher net margin (0.00% vs −11.3%) and the lower return on invested capital (0.00% vs 3.42%). Both pay a dividend; Prospect Capital Corporation yields more (34.5% vs 12.5%). Across the 19 metrics below, Prospect Capital Corporation leads on 11 and Kayne Anderson BDC, Inc. on 8.

Valuation

Metric KBDC PSEC Asset Management median
P/E 15.19 n/m 13.38
P/S 3.57 1.15 2.99
P/B 0.81 0.25 0.91
Price to free cash flow 7.31 1.18 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 6.58% (10.79%) 4.67%
Free cash flow yield 13.68% 84.91% 4.85%

Profitability

Metric KBDC PSEC Asset Management median
Gross margin 84.96% 74.50% 100.00%
Operating margin 83.39% 71.06% 27.27%
Net margin 0.00% (11.32%) 11.89%
Free cash flow margin 0.00% 97.70% 5.96%
Return on equity 5.20% (2.44%) 4.57%
Return on assets 2.44% (1.13%) 1.40%
Return on invested capital 0.00% 3.42% 2.12%

Growth

Metric KBDC PSEC Asset Management median
Revenue growth (TTM) 4.24% (6.93%) 7.26%
EPS growth (last fiscal year) (35.57%) 104.44% (5.64%)
Revenue growth, 5-year CAGR — 0.24% 11.84%
Net income growth, 5-year CAGR 0.00% (50.08%) 0.00%

Health

Metric KBDC PSEC Asset Management median
Debt to equity 1.15 0.34 0.40
Current ratio 0.00 0.87 1.23
Net debt to EBITDA 5.54 3.95 1.06

Dividend

Metric KBDC PSEC Asset Management median
Dividend yield 12.54% 34.53% 6.43%
Payout ratio 1.90 16.00 0.91

Size

Metric KBDC PSEC Asset Management median
Market cap 841.32m 739.34m 692.54m

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