Horizon Technology Finance Corporation (NASDAQ: HRZN) is one of 565 public companies in the “Closed End Funds” industry, but how does it contrast to its competitors? We will compare Horizon Technology Finance Corporation to similar businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, earnings, valuation and risk.

Valuation and Earnings

This table compares Horizon Technology Finance Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Horizon Technology Finance Corporation N/A N/A -70.50
Horizon Technology Finance Corporation Competitors $57.58 million $38.86 million -0.05

Horizon Technology Finance Corporation’s competitors have higher revenue and earnings than Horizon Technology Finance Corporation. Horizon Technology Finance Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

18.2% of Horizon Technology Finance Corporation shares are held by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are held by institutional investors. 1.3% of Horizon Technology Finance Corporation shares are held by company insiders. Comparatively, 4.5% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Horizon Technology Finance Corporation has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Horizon Technology Finance Corporation’s competitors have a beta of 0.56, meaning that their average stock price is 44% less volatile than the S&P 500.

Profitability

This table compares Horizon Technology Finance Corporation and its competitors’ 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%
Horizon Technology Finance Corporation Competitors 16.05% 6.33% 4.83%

Dividends

Horizon Technology Finance Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 10.6%. Horizon Technology Finance Corporation pays out -750.0% of its earnings in the form of a dividend. As a group, “Closed End Funds” companies pay a dividend yield of 8.8% and pay out 87.0% of their earnings in the form of a dividend. Horizon Technology Finance Corporation is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings for Horizon Technology Finance Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Technology Finance Corporation 1 3 1 0 2.00
Horizon Technology Finance Corporation Competitors 345 1483 1519 26 2.36

Horizon Technology Finance Corporation currently has a consensus price target of $10.75, indicating a potential downside of 4.70%. As a group, “Closed End Funds” companies have a potential upside of 40.10%. Given Horizon Technology Finance Corporation’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Horizon Technology Finance Corporation has less favorable growth aspects than its competitors.

Summary

Horizon Technology Finance Corporation competitors beat Horizon Technology Finance Corporation on 8 of the 13 factors compared.

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.

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