Reviewing WhiteHorse Finance (WHF) and Helios Advantage Income Fund (HAV)

WhiteHorse Finance (NASDAQ: WHF) and Helios Advantage Income Fund (NYSE:HAV) are both financials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Profitability

This table compares WhiteHorse Finance and Helios Advantage Income Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteHorse Finance 64.58% 9.69% 5.54%
Helios Advantage Income Fund N/A N/A N/A

Analyst Ratings

This is a breakdown of current recommendations for WhiteHorse Finance and Helios Advantage Income Fund, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 1 2 1 0 2.00
Helios Advantage Income Fund 0 0 0 0 N/A

WhiteHorse Finance currently has a consensus target price of $15.00, indicating a potential upside of 24.17%.

Valuation & Earnings

This table compares WhiteHorse Finance and Helios Advantage Income Fund’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WhiteHorse Finance $53.85 million 4.61 $31.32 million $1.86 6.49
Helios Advantage Income Fund N/A N/A N/A N/A N/A

WhiteHorse Finance has higher revenue and earnings than Helios Advantage Income Fund.

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 11.8%. Helios Advantage Income Fund does not pay a dividend. WhiteHorse Finance pays out 76.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

9.3% of WhiteHorse Finance shares are owned by institutional investors. 1.4% of WhiteHorse Finance 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.

Summary

WhiteHorse Finance beats Helios Advantage Income Fund on 8 of the 9 factors compared between the two stocks.

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.

Helios Advantage Income Fund Company Profile

Helios Advantage Income Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks a high level of current income. The Fund seeks capital growth as a secondary investment objective. It invests a majority of its total assets in below-investment-grade debt securities. The Fund also may invest in investment grade debt securities, up to 15% of its total assets in foreign debt and foreign equity securities, and up to 25% of its total assets in domestic equity securities, including common and preferred stocks. The Fund invests in a range of below-investment-grade debt securities, including corporate bonds, mortgage-backed and asset-backed securities, and municipal and foreign government obligations, as well as securities of companies in bankruptcy reorganization proceedings or otherwise in the process of debt restructuring. The Fund’s investment advisor is Brookfield Investment Management Inc.

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