Reviewing Kayne Anderson BDC (NYSE:KBDC) and Robinhood Markets (NASDAQ:HOOD)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Robinhood Markets	42.01%	22.43%	4.56%
Kayne Anderson BDC	31.54%	10.63%	5.06%

Insider and Institutional Ownership

93.3% of Robinhood Markets shares are owned by institutional investors. 13.5% of Robinhood Markets shares are owned by company insiders. Comparatively, 2.9% of Kayne Anderson BDC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Robinhood Markets	$4.47 billion	19.87	$1.88 billion	$2.27	43.56
Kayne Anderson BDC	$84.89 million	9.68	$93.71 million	$1.09	11.42

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

Risk & Volatility

Robinhood Markets has a beta of 2.35, meaning that its share price is 135% more volatile than the S&P 500. Comparatively, Kayne Anderson BDC has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Robinhood Markets and Kayne Anderson BDC, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Robinhood Markets	1	5	26	2	2.85
Kayne Anderson BDC	0	3	2	0	2.40

Robinhood Markets presently has a consensus price target of $129.66, suggesting a potential upside of 31.14%. Kayne Anderson BDC has a consensus price target of $14.50, suggesting a potential upside of 16.51%. Given Robinhood Markets’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Robinhood Markets is more favorable than Kayne Anderson BDC.

Summary

Robinhood Markets beats Kayne Anderson BDC on 14 of the 15 factors compared between the two stocks.

About Robinhood Markets

Robinhood Markets, Inc. operates financial services platform in the United States. Its platform allows users to invest in stocks, exchange-traded funds (ETFs), American depository receipts, options, gold, and cryptocurrencies. The company offers fractional trading, recurring investments, fully-paid securities lending, access to investing on margin, cash sweep, instant withdrawals, retirement program, around-the-clock trading, and initial public offerings participation services. It also provides various learning and education solutions comprise Snacks, an accessible digest of business news stories for a new generation of investors.; Learn, which is an online collection of beginners' guides, feature tutorials, and financial dictionary; Newsfeeds that offer access to free, premium news from sites from various sites, such as Barron's, Reuters, and Dow Jones. In addition, the company offers In-App Education, a resource that covers investing fundamentals, including why people invest, a stock market overview, and tips on how to define investing goals, as well as allows customers to understand the basics of investing before their first trade; and Crypto Learn and Earn, an educational module available to various crypto customers through Robinhood Learn to teach customers the basics related to cryptocurrency. Further, it provides Robinhood credit cards, cash card and spending accounts, and wallets. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California.

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.