Head-To-Head Contrast: Kayne Anderson BDC (NYSE:KBDC) and Amalgamated Financial (NASDAQ:AMAL)

Kayne Anderson BDC (NYSE:KBDC) and Amalgamated Financial (NASDAQ:AMAL) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for Kayne Anderson BDC and Amalgamated Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kayne Anderson BDC	0	2	2	0	2.50
Amalgamated Financial	1	0	1	0	2.00

Kayne Anderson BDC currently has a consensus price target of $16.50, indicating a potential upside of 21.15%. Amalgamated Financial has a consensus price target of $33.00, indicating a potential upside of 21.06%. Given Kayne Anderson BDC’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kayne Anderson BDC is more favorable than Amalgamated Financial.

Dividends

Kayne Anderson BDC pays an annual dividend of $1.60 per share and has a dividend yield of 11.7%. Amalgamated Financial pays an annual dividend of $0.56 per share and has a dividend yield of 2.1%. Kayne Anderson BDC pays out 94.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Amalgamated Financial pays out 16.8% of its earnings in the form of a dividend. Amalgamated Financial has increased its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Kayne Anderson BDC and Amalgamated Financial”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	$213.11 million	4.51	$131.94 million	$1.69	8.06
Amalgamated Financial	$434.51 million	1.89	$106.43 million	$3.34	8.16

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

Risk & Volatility

Kayne Anderson BDC has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500. Comparatively, Amalgamated Financial has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.

Insider & Institutional Ownership

75.9% of Amalgamated Financial shares are owned by institutional investors. 3.2% of Kayne Anderson BDC shares are owned by company insiders. Comparatively, 1.3% of Amalgamated Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kayne Anderson BDC	52.99%	10.90%	5.97%
Amalgamated Financial	23.60%	15.21%	1.31%

Summary

Kayne Anderson BDC beats Amalgamated Financial on 9 of the 17 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 Amalgamated Financial

Amalgamated Financial Corp. operates as the bank holding company for Amalgamated Bank that provides commercial and retail banking, investment management, and trust and custody services for commercial and retail customers in the United States. The company accepts various deposit products, including non-interest bearing accounts, interest-bearing demand products, savings accounts, money market accounts, NOW accounts, and certificates of deposit. It also provides various commercial loans comprising commercial and industrial, multifamily mortgage, and commercial real estate loans; residential mortgage loans; and retail loans, such as residential real estate, consumer solar, and consumer and other loans. In addition, the company offers online banking, bill payment, online cash management, and safe deposit box rental services; debit and ATM cards; and trust, custody, and investment management services comprising asset safekeeping, corporate actions, income collections, proxy, account transition, asset transfers, and conversion management services. Further, it provides investment products, such as funds spanning equity, fixed-income, real estate, and alternative investment products; and brokerage, asset management, and insurance products. Amalgamated Financial Corp. was founded in 1923 and is headquartered in New York, New York.