Comparing Oxford Lane Capital (OXLC) & Kayne Anderson Energy Development (KED)

Oxford Lane Capital (NASDAQ: OXLC) and Kayne Anderson Energy Development (NYSE:KED) are both small-cap financials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of current ratings for Oxford Lane Capital and Kayne Anderson Energy Development, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oxford Lane Capital 0 0 1 0 3.00
Kayne Anderson Energy Development 0 0 1 0 3.00

Oxford Lane Capital presently has a consensus price target of $11.00, suggesting a potential upside of 9.34%. Kayne Anderson Energy Development has a consensus price target of $20.00, suggesting a potential upside of 15.47%. Given Kayne Anderson Energy Development’s higher possible upside, analysts clearly believe Kayne Anderson Energy Development is more favorable than Oxford Lane Capital.

Profitability

This table compares Oxford Lane Capital and Kayne Anderson Energy Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oxford Lane Capital 18.15% 5.38% 3.27%
Kayne Anderson Energy Development -2,475.00% -13.79% -8.15%

Dividends

Oxford Lane Capital pays an annual dividend of $1.60 per share and has a dividend yield of 15.9%. Kayne Anderson Energy Development pays an annual dividend of $1.60 per share and has a dividend yield of 9.2%. Oxford Lane Capital pays out 116.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kayne Anderson Energy Development pays out -125.0% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Oxford Lane Capital and Kayne Anderson Energy Development’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oxford Lane Capital N/A N/A N/A $1.37 7.34
Kayne Anderson Energy Development N/A N/A N/A ($1.28) -13.53

Kayne Anderson Energy Development is trading at a lower price-to-earnings ratio than Oxford Lane Capital, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Oxford Lane Capital has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Kayne Anderson Energy Development has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Summary

Oxford Lane Capital beats Kayne Anderson Energy Development on 6 of the 9 factors compared between the two stocks.

Oxford Lane Capital Company Profile

Oxford Lane Capital Corp. is a non-diversified closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk adjusted total return and seeks to achieve its investment objective by investing in structured finance investments, specifically collateralized loan obligation (CLO) vehicles, which primarily own senior corporate debt securities. The Fund holds debt investments in over three different CLO structures and equity investments in approximately 30 different CLO structures. Its investment strategy also includes investing in warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Fund may also invest, on an opportunistic basis, in corporate debt securities on a direct basis and a range of other corporate credits. Oxford Lane Management, LLC (OXLC Management) is the investment advisor of the Fund.

Kayne Anderson Energy Development Company Profile

Kayne Anderson Energy Development Company is a non-diversified, closed-end fund. The Fund’s investment objective is to generate both current income and capital appreciation, through equity and debt investments. It seeks to achieve this objective by investing approximately 80% of its total assets in securities of companies that derive their revenue from activities in the energy industry, including midstream energy companies, which operates assets used to gather, transport, process, treat, terminal and store natural gas, natural gas liquids, crude oil or refined petroleum products; upstream energy companies, which are engaged in the exploration, extraction and production of natural resources, including natural gas, natural gas liquids and crude oil, from onshore and offshore geological reservoirs, and other energy companies, which are engaged in owning, leasing, managing, producing, processing and selling of coal and coal reserves. KA Fund Advisors, LLC is the advisor of the Fund.

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