Kayne Anderson BDC (NYSE:KBDC) and Blackrock Tcp Capital (NASDAQ:TCPC) Head to Head Analysis

Blackrock Tcp Capital (NASDAQ:TCPC) and Kayne Anderson BDC (NYSE:KBDC) are both small-cap finance companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.

Risk and Volatility

Blackrock Tcp Capital has a beta of 0.95, suggesting that its share price is 5% less volatile than the S&P 500. Comparatively, Kayne Anderson BDC has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Blackrock Tcp Capital and Kayne Anderson BDC, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blackrock Tcp Capital	3	1	0	0	1.25
Kayne Anderson BDC	0	2	2	0	2.50

Blackrock Tcp Capital presently has a consensus price target of $3.50, indicating a potential upside of 10.76%. Kayne Anderson BDC has a consensus price target of $15.12, indicating a potential upside of 12.36%. Given Kayne Anderson BDC’s stronger consensus rating and higher possible upside, analysts clearly believe Kayne Anderson BDC is more favorable than Blackrock Tcp Capital.

Dividends

Blackrock Tcp Capital pays an annual dividend of $0.68 per share and has a dividend yield of 21.5%. Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 11.9%. Blackrock Tcp Capital pays out -45.6% of its earnings in the form of a dividend. Kayne Anderson BDC pays out 125.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Blackrock Tcp Capital is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blackrock Tcp Capital	-66.92%	14.30%	5.47%
Kayne Anderson BDC	37.30%	10.47%	5.14%

Earnings and Valuation

This table compares Blackrock Tcp Capital and Kayne Anderson BDC”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blackrock Tcp Capital	$201.79 million	1.31	-$88.93 million	($1.49)	-2.12
Kayne Anderson BDC	$235.82 million	3.79	$93.71 million	$1.28	10.52

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

Summary

Kayne Anderson BDC beats Blackrock Tcp Capital on 9 of the 14 factors compared between the two stocks.

About Blackrock Tcp Capital

BlackRock TCP Capital Corp. is a business development company specializing in direct equity and debt investments in middle-market, small businesses, debt securities, senior secured loans, junior loans, originated loans, mezzanine, senior debt instruments, bonds, and secondary-market investments. It typically invests in communication services, public relations services, television, wireless telecommunication services, apparel, textile mills, restaurants, retailing, energy, oil and gas extraction, Patent owners and Lessors, Federal and Federally- Sponsored Credit agencies, insurance, hospital and healthcare centers, Biotechnology, engineering services, heavy electrical equipment, tax accounting, scientific and related consulting services, charter freight air transportation, Information technology consulting, application hosting services, software diagram and design, computer aided design, communication equipment, electronics manufacturing equipment, computer components, chemicals. It seeks to invest in the United States. The fund typically invests between $10 million and $35 million in companies with enterprise values between $100 million and $1500 million including complex situations. It prefers to make equity investments in companies for an ownership stake.

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.