Comparing Horizon Technology Finance Corporation (HRZN) & Kayne Anderson Energy Development (KED)
Horizon Technology Finance Corporation (NASDAQ: HRZN) and Kayne Anderson Energy Development (NYSE:KED) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.
Earnings and Valuation
This table compares Horizon Technology Finance Corporation and Kayne Anderson Energy Development’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Horizon Technology Finance Corporation||N/A||N/A||N/A||($0.16)||-69.43|
|Kayne Anderson Energy Development||N/A||N/A||N/A||N/A||N/A|
Horizon Technology Finance Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 10.8%. Kayne Anderson Energy Development does not pay a dividend. Horizon Technology Finance Corporation pays out -750.0% of its earnings in the form of a dividend.
This table compares Horizon Technology Finance Corporation and Kayne Anderson Energy Development’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Technology Finance Corporation||-6.72%||10.24%||6.29%|
|Kayne Anderson Energy Development||-3,648.20%||-38.54%||-22.63%|
This is a breakdown of current ratings and recommmendations for Horizon Technology Finance Corporation and Kayne Anderson Energy Development, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Technology Finance Corporation||1||3||1||0||2.00|
|Kayne Anderson Energy Development||0||0||1||0||3.00|
Horizon Technology Finance Corporation currently has a consensus price target of $10.75, suggesting a potential downside of 3.24%. Kayne Anderson Energy Development has a consensus price target of $20.00, suggesting a potential upside of 15.41%. Given Kayne Anderson Energy Development’s stronger consensus rating and higher probable upside, analysts clearly believe Kayne Anderson Energy Development is more favorable than Horizon Technology Finance Corporation.
Institutional and Insider Ownership
18.2% of Horizon Technology Finance Corporation shares are owned by institutional investors. 1.3% of Horizon Technology Finance Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Horizon Technology Finance Corporation beats Kayne Anderson Energy Development on 7 of the 9 factors compared between the two stocks.
About Horizon Technology Finance Corporation
Horizon Technology Finance Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to maximize investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. It lends to and invests in development-stage companies in the technology, life science, healthcare information and services and cleantech industries (collectively Target Industries). It is focused on making secured debt investments (Venture Loans) to venture capital backed companies in its Target Industries. As of December 31, 2016, its debt investment portfolio consisted of 44 debt investments. As of December 31, 2016, the Company held warrants to purchase stock, predominantly preferred stock, in 78 portfolio companies, equity positions in five portfolio companies and success fee arrangements in 11 portfolio companies.
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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