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

Kayne Anderson BDC, Inc. and Prospect Capital Corporation are both Asset Management companies. Prospect Capital Corporation is the larger, with a market value of $1.2B against $857.8M — 1.4× the size. Kayne Anderson BDC, Inc. trades at the lower P/E: 12.0× against 43.8×. Kayne Anderson BDC, Inc. grew revenue faster over the last twelve months: 4.24% against −11.1%. Kayne Anderson BDC, Inc. has the higher net margin (31.5% vs 4.66%) and the higher return on invested capital (5.43% vs 3.23%). Across the 20 metrics below, Kayne Anderson BDC, Inc. leads on 11 and Prospect Capital Corporation on 9.

Valuation

Metric KBDC PSEC Asset Management median
P/E 11.99 43.80 14.62
P/S 3.67 1.64 2.97
P/B 0.82 0.36 0.94
Price to free cash flow n/m 2.04 8.93
EV/EBITDA 10.31 6.23 10.32
EV/Sales 8.79 4.49 5.72
Earnings yield 8.34% 2.28% 4.53%
Free cash flow yield (0.41%) 49.13% 4.65%

Profitability

Metric KBDC PSEC Asset Management median
Gross margin 84.96% 75.38% 100.00%
Operating margin 83.39% 71.35% 33.03%
Net margin 31.54% 4.66% 13.53%
Free cash flow margin (1.50%) 80.74% 12.44%
Return on equity 6.72% 1.01% 4.83%
Return on assets 3.24% 0.45% 1.57%
Return on invested capital 5.43% 3.23% 3.04%

Growth

Metric KBDC PSEC Asset Management median
Revenue growth (TTM) 4.24% (11.12%) 6.97%
EPS growth (last fiscal year) (35.75%) 104.44% —
Revenue growth, 5-year CAGR — 0.24% 12.13%
Net income growth, 5-year CAGR 0.00% (50.08%) 0.00%

Health

Metric KBDC PSEC Asset Management median
Debt to equity 1.16 0.41 0.42
Current ratio 1.25 0.87 1.28
Net debt to EBITDA 5.54 3.95 1.06

Dividend

Metric KBDC PSEC Asset Management median
Dividend yield — 12.39% 6.92%
Payout ratio — 1.31 0.77

Size

Metric KBDC PSEC Asset Management median
Market cap 857.83m 1.16b 721.34m

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