Horizon Technology Finance Corporation (NASDAQ: HRZN) is one of 553 public companies in the “Closed End Funds” industry, but how does it weigh in compared to its peers? We will compare Horizon Technology Finance Corporation to related companies based off the strength of its valuation, institutional ownership, analyst recommendations, risk, earnings, dividends and profitability.

Analyst Recommendations

This is a summary of current recommendations and price targets for Horizon Technology Finance Corporation and its peers, as provided by MarketBeat.

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 339 1470 1496 26 2.36

Horizon Technology Finance Corporation currently has a consensus price target of $10.75, suggesting a potential upside of 1.70%. All “Closed End Funds” companies have a potential upside of 43.68%. Given Horizon Technology Finance Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Horizon Technology Finance Corporation has less favorable growth aspects than its peers.

Dividends

Horizon Technology Finance Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 11.4%. 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 9.4% and pay out 92.9% of their earnings in the form of a dividend. Horizon Technology Finance Corporation is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

18.2% of Horizon Technology Finance Corporation shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.3% of Horizon Technology Finance Corporation shares are owned by insiders. Comparatively, 3.3% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Horizon Technology Finance Corporation has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Horizon Technology Finance Corporation’s peers have a beta of 0.56, suggesting that their average share price is 44% less volatile than the S&P 500.

Valuation & Earnings

This table compares Horizon Technology Finance Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Horizon Technology Finance Corporation N/A N/A -66.06
Horizon Technology Finance Corporation Competitors $57.20 million $39.05 million 0.17

Horizon Technology Finance Corporation’s peers 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 peers, indicating that it is currently the more affordable than other companies in its industry.

Profitability

This table compares Horizon Technology Finance Corporation and its peers’ 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 -136.27% 7.58% 5.79%

Horizon Technology Finance Corporation Company Profile

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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