WhiteHorse Finance (NASDAQ: WHF) is one of 574 public companies in the “Closed End Funds” industry, but how does it compare to its rivals? We will compare WhiteHorse Finance to related companies based on the strength of its earnings, dividends, analyst recommendations, profitability, risk, valuation and institutional ownership.

Profitability

This table compares WhiteHorse Finance and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteHorse Finance 62.57% 10.57% 5.99%
WhiteHorse Finance Competitors -49.41% 6.60% 5.17%

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 9.7%. WhiteHorse Finance pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 8.7% and pay out 87.0% of their earnings in the form of a dividend. WhiteHorse Finance is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

9.6% of WhiteHorse Finance shares are owned by institutional investors. Comparatively, 23.2% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.4% of WhiteHorse Finance shares are owned by insiders. Comparatively, 4.5% of shares of all “Closed End Funds” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

WhiteHorse Finance has a beta of 0.76, indicating that its share price is 24% less volatile than the S&P 500. Comparatively, WhiteHorse Finance’s rivals have a beta of 0.55, indicating that their average share price is 45% less volatile than the S&P 500.

Valuation & Earnings

This table compares WhiteHorse Finance and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
WhiteHorse Finance N/A N/A 7.82
WhiteHorse Finance Competitors $57.58 million $38.86 million -0.16

WhiteHorse Finance’s rivals have higher revenue and earnings than WhiteHorse Finance. WhiteHorse Finance is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings and recommmendations for WhiteHorse Finance and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 0 0 1 0 3.00
WhiteHorse Finance Competitors 192 1183 1413 13 2.45

WhiteHorse Finance presently has a consensus price target of $15.00, suggesting a potential upside of 2.04%. As a group, “Closed End Funds” companies have a potential upside of 40.97%. Given WhiteHorse Finance’s rivals higher possible upside, analysts plainly believe WhiteHorse Finance has less favorable growth aspects than its rivals.

Summary

WhiteHorse Finance beats its rivals on 8 of the 13 factors compared.

WhiteHorse Finance Company Profile

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.

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