Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) and MarketWise (NASDAQ:MKTW – Get Free Report) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Horizon Technology Finance and MarketWise”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Horizon Technology Finance | $20.51 million | 15.70 | -$2.66 million | $0.36 | 13.35 |
| MarketWise | $317.50 million | 0.91 | $5.62 million | $0.88 | 20.90 |
Risk and Volatility
Horizon Technology Finance has a beta of 0.99, indicating that its share price is 1% less volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings for Horizon Technology Finance and MarketWise, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Horizon Technology Finance | 1 | 5 | 1 | 0 | 2.00 |
| MarketWise | 0 | 1 | 1 | 0 | 2.50 |
Horizon Technology Finance presently has a consensus target price of $5.00, suggesting a potential upside of 4.06%. Given Horizon Technology Finance’s higher probable upside, research analysts plainly believe Horizon Technology Finance is more favorable than MarketWise.
Insider and Institutional Ownership
4.9% of Horizon Technology Finance shares are owned by institutional investors. Comparatively, 23.0% of MarketWise shares are owned by institutional investors. 0.3% of Horizon Technology Finance shares are owned by insiders. Comparatively, 30.0% of MarketWise shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Horizon Technology Finance and MarketWise’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Horizon Technology Finance | 5.27% | 11.15% | 4.84% |
| MarketWise | 0.70% | -0.96% | 1.10% |
Dividends
Horizon Technology Finance pays an annual dividend of $0.72 per share and has a dividend yield of 15.0%. MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 5.4%. Horizon Technology Finance pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MarketWise pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MarketWise has raised its dividend for 1 consecutive years.
Summary
MarketWise beats Horizon Technology Finance on 9 of the 16 factors compared between the two stocks.
About Horizon Technology Finance
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
About MarketWise
MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.
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