Kayne Anderson Energy Development (KED) versus Its Rivals Critical Contrast

Kayne Anderson Energy Development (NYSE: KED) is one of 547 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Kayne Anderson Energy Development to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

Kayne Anderson Energy Development pays an annual dividend of $1.60 per share and has a dividend yield of 10.2%. Kayne Anderson Energy Development pays out -2,285.7% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.0% and pay out 90.6% of their earnings in the form of a dividend. Kayne Anderson Energy Development is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kayne Anderson Energy Development and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kayne Anderson Energy Development 0 0 1 0 3.00
Kayne Anderson Energy Development Competitors 237 1575 1937 33 2.47

Kayne Anderson Energy Development presently has a consensus price target of $20.00, indicating a potential upside of 27.06%. As a group, “Closed End Funds” companies have a potential upside of 48.84%. Given Kayne Anderson Energy Development’s peers higher possible upside, analysts plainly believe Kayne Anderson Energy Development has less favorable growth aspects than its peers.

Insider and Institutional Ownership

23.5% of shares of all “Closed End Funds” companies are owned by institutional investors. 5.1% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Kayne Anderson Energy Development and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kayne Anderson Energy Development -2,475.00% -13.79% -8.15%
Kayne Anderson Energy Development Competitors -14.75% 7.58% 5.80%

Risk and Volatility

Kayne Anderson Energy Development has a beta of 1.3, indicating that its stock price is 30% more volatile than the S&P 500. Comparatively, Kayne Anderson Energy Development’s peers have a beta of 0.55, indicating that their average stock price is 45% less volatile than the S&P 500.

Earnings and Valuation

This table compares Kayne Anderson Energy Development and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Kayne Anderson Energy Development N/A N/A -224.86
Kayne Anderson Energy Development Competitors $238.76 million $44.95 million 270.86

Kayne Anderson Energy Development’s peers have higher revenue and earnings than Kayne Anderson Energy Development. Kayne Anderson Energy Development is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Kayne Anderson Energy Development peers beat Kayne Anderson Energy Development on 8 of the 13 factors compared.

About Kayne Anderson Energy Development

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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