Critical Survey: Cochlear (OTCMKTS:CHEOY) versus Kayne Anderson BDC (NYSE:KBDC)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Kayne Anderson BDC and Cochlear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	2	2	1	2.80
Cochlear	0	2	0	0	2.00

Kayne Anderson BDC presently has a consensus price target of $17.30, suggesting a potential upside of 5.62%. Given Kayne Anderson BDC’s stronger consensus rating and higher possible upside, analysts clearly believe Kayne Anderson BDC is more favorable than Cochlear.

Valuation & Earnings

This table compares Kayne Anderson BDC and Cochlear”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kayne Anderson BDC	$122.29 million	9.52	$77.07 million	N/A	N/A
Cochlear	$1.49 billion	7.49	$233.99 million	N/A	N/A

Cochlear has higher revenue and earnings than Kayne Anderson BDC.

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 9.8%. Cochlear pays an annual dividend of $1.23 per share and has a dividend yield of 1.4%.

Profitability

This table compares Kayne Anderson BDC and Cochlear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kayne Anderson BDC	59.80%	12.65%	6.77%
Cochlear	N/A	N/A	N/A

Summary

Kayne Anderson BDC beats Cochlear on 9 of the 11 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 Cochlear

Cochlear Limited provides implantable hearing solutions for children and adults worldwide. It offers cochlear implant systems, sound processor upgrades, bone conduction systems, accessories, and other products. Cochlear Limited was founded in 1981 and is headquartered in Sydney, Australia.