KBDC vs ARCC

For growth investors, Ares Capital Corporation (ARCC) is the stronger pick with 32.

9% revenue growth year-over-year, versus 29. 9% for Kayne Anderson BDC, Inc. (KBDC). Kayne Anderson BDC, Inc. (KBDC) offers the better valuation at 9. 1x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate Kayne Anderson BDC, Inc. (KBDC) a "Buy" — based on 4 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Kayne Anderson BDC, Inc.

(KBDC) is the cheapest at 9. 1x versus Ares Capital Corporation at 10. 3x. On forward P/E, Kayne Anderson BDC, Inc. is actually cheaper at 9. 5x.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +49.

5%, compared to +15. 2% for Kayne Anderson BDC, Inc. (KBDC). Over 10 years, the gap is even starker: ARCC returned +139. 7% versus KBDC's +15. 2%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Kayne Anderson BDC, Inc.

(KBDC) is the lower-risk stock at 0. 56β versus Ares Capital Corporation's 0. 77β — meaning ARCC is approximately 37% more volatile than KBDC relative to the S&P 500.

By revenue growth (latest reported year), Ares Capital Corporation (ARCC) is pulling ahead at 32.

9% versus 29. 9% for Kayne Anderson BDC, Inc. (KBDC). On earnings-per-share growth, the picture is similar: Kayne Anderson BDC, Inc. grew EPS -19. 3% year-over-year, compared to -23. 8% for Ares Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Ares Capital Corporation (ARCC) is the more profitable company, earning 41.

3% net margin versus 0. 0% for Kayne Anderson BDC, Inc. — meaning it keeps 41. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ARCC leads at 69. 7% versus 0. 0% for KBDC. At the gross margin level — before operating expenses — ARCC leads at 75. 7%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Kayne Anderson BDC, Inc.

(KBDC) trades at 9. 5x forward P/E versus 10. 0x for Ares Capital Corporation — 0. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ARCC: 14. 2% to $21. 88.

All stocks in this comparison pay dividends.

Ares Capital Corporation (ARCC) offers the highest yield at 2. 0%, versus 0. 6% for Kayne Anderson BDC, Inc. (KBDC).

For long-horizon retirement investors, Kayne Anderson BDC, Inc.

(KBDC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 56), 0. 6% yield). Both have compounded well over 10 years (KBDC: +15. 2%, ARCC: +139. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.