Comparing Eagle Point Credit (ECC) and Kayne Anderson Energy Development (KED)
Eagle Point Credit (NYSE: ECC) and Kayne Anderson Energy Development (NYSE:KED) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Eagle Point Credit pays an annual dividend of $2.40 per share and has a dividend yield of 11.5%. Kayne Anderson Energy Development does not pay a dividend. Eagle Point Credit pays out 46.2% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Eagle Point Credit and Kayne Anderson Energy Development’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eagle Point Credit||N/A||N/A||N/A||$5.20||4.00|
|Kayne Anderson Energy Development||N/A||N/A||N/A||N/A||N/A|
Institutional and Insider Ownership
58.2% of Eagle Point Credit shares are held by institutional investors. 0.6% of Eagle Point Credit shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Eagle Point Credit and Kayne Anderson Energy Development’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eagle Point Credit||134.32%||10.56%||6.96%|
|Kayne Anderson Energy Development||-3,648.20%||-38.54%||-22.63%|
This is a summary of recent recommendations and price targets for Eagle Point Credit and Kayne Anderson Energy Development, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eagle Point Credit||0||0||4||0||3.00|
|Kayne Anderson Energy Development||0||0||1||0||3.00|
Eagle Point Credit presently has a consensus target price of $22.83, suggesting a potential upside of 9.88%. Kayne Anderson Energy Development has a consensus target price of $20.00, suggesting a potential upside of 23.92%. Given Kayne Anderson Energy Development’s higher possible upside, analysts clearly believe Kayne Anderson Energy Development is more favorable than Eagle Point Credit.
Eagle Point Credit beats Kayne Anderson Energy Development on 7 of the 9 factors compared between the two stocks.
Eagle Point Credit Company Profile
Eagle Point Credit Company Inc. is a non-diversified, closed-end management investment company. The Company’s primary investment objective is to generate high current income, with a secondary objective to generate capital appreciation. The Company primarily invests in equity and junior debt tranches of collateralized loan obligations (CLOs) that are collateralized by a portfolio consisting primarily of the below investment grade United States senior secured loans. It may also invest in other securities and instruments related to these investments. The Company’s portfolio includes its investments in various industries, such as business equipment and services; healthcare; electronics/electrical; leisure goods/activities/movies; retailers (except food and drug); chemicals and plastics; telecommunications; financial intermediaries, and utilities. The Company’s advisor is Eagle Point Credit Management LLC.
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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