Comparing Kayne Anderson BDC (NYSE:KBDC) & UBS Group (NYSE:UBS)

Kayne Anderson BDC (NYSE:KBDC) and UBS Group (NYSE:UBS) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 12.2%. UBS Group pays an annual dividend of $0.35 per share and has a dividend yield of 0.7%. Kayne Anderson BDC pays out 146.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UBS Group pays out 11.9% of its earnings in the form of a dividend. UBS Group has raised its dividend for 5 consecutive years.

Volatility & Risk

Kayne Anderson BDC has a beta of 0.32, indicating that its share price is 68% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for Kayne Anderson BDC and UBS Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	1	2	2	0	2.20
UBS Group	2	5	4	0	2.18

Kayne Anderson BDC currently has a consensus target price of $14.50, indicating a potential upside of 10.98%. UBS Group has a consensus target price of $60.30, indicating a potential upside of 26.45%. Given UBS Group’s higher possible upside, analysts clearly believe UBS Group is more favorable than Kayne Anderson BDC.

Profitability

This table compares Kayne Anderson BDC and UBS Group’s 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%
UBS Group	13.10%	10.50%	0.57%

Earnings & Valuation

This table compares Kayne Anderson BDC and UBS Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kayne Anderson BDC	$84.89 million	10.16	$93.71 million	$1.09	11.99
UBS Group	$50.90 billion	2.93	$7.77 billion	$2.94	16.22

UBS Group has higher revenue and earnings than Kayne Anderson BDC. Kayne Anderson BDC is trading at a lower price-to-earnings ratio than UBS Group, indicating that it is currently the more affordable of the two stocks.

Summary

UBS Group beats Kayne Anderson BDC on 9 of the 15 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 UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.