WhiteHorse Finance (NASDAQ: WHF) and Eaton Vance Tax Managed Buy Write Opport (NYSE:ETV) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, dividends, risk, profitabiliy, analyst recommendations and institutional ownership.

Earnings & Valuation

This table compares WhiteHorse Finance and Eaton Vance Tax Managed Buy Write Opport’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WhiteHorse Finance N/A N/A N/A $1.93 7.03
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A N/A N/A

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 10.5%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. WhiteHorse Finance pays out 73.6% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for WhiteHorse Finance and Eaton Vance Tax Managed Buy Write Opport, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 0 0 3 0 3.00
Eaton Vance Tax Managed Buy Write Opport 0 1 0 0 2.00

WhiteHorse Finance presently has a consensus target price of $13.50, indicating a potential downside of 0.52%. Eaton Vance Tax Managed Buy Write Opport has a consensus target price of $40.00, indicating a potential upside of 157.07%. Given Eaton Vance Tax Managed Buy Write Opport’s higher probable upside, analysts plainly believe Eaton Vance Tax Managed Buy Write Opport is more favorable than WhiteHorse Finance.

Insider and Institutional Ownership

11.6% of WhiteHorse Finance shares are held by institutional investors. 1.4% of WhiteHorse Finance shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares WhiteHorse Finance and Eaton Vance Tax Managed Buy Write Opport’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteHorse Finance 65.58% 10.78% 6.00%
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A

Summary

WhiteHorse Finance beats Eaton Vance Tax Managed Buy Write Opport on 8 of the 10 factors compared between the two stocks.

About WhiteHorse Finance

WhiteHorse Finance, Inc. is a non-diversified, closed-end management investment company. The Company is a direct lender targeting debt investments in privately held, small-cap companies located in the United States. The Company’s investment objective is to generate attractive risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing small-cap companies across a range of industries that typically carry a floating interest rate based on the London Interbank Offered Rate (LIBOR) and have a term of 3 to 6 years. The Company may also make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests. The Company also may receive warrants to purchase common stock in connection with its debt investments. Its investment advisor is H.I.G. WhiteHorse Advisers, LLC.

About Eaton Vance Tax Managed Buy Write Opport

Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.

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