Financial Contrast: Horizon Technology Finance (NASDAQ:HRZN) versus Invesco Trust for Investment Grade New York Municipals (NYSE:VTN)

Horizon Technology Finance (NASDAQ:HRZN) and Invesco Trust for Investment Grade New York Municipals (NYSE:VTN) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, profitability and risk.

Valuation and Earnings

This table compares Horizon Technology Finance and Invesco Trust for Investment Grade New York Municipals’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Technology Finance	$113.47 million	3.35	-$17.18 million	($0.49)	-23.20
Invesco Trust for Investment Grade New York Municipals	N/A	N/A	N/A	N/A	N/A

Invesco Trust for Investment Grade New York Municipals has lower revenue, but higher earnings than Horizon Technology Finance.

Analyst Recommendations

This is a breakdown of recent ratings for Horizon Technology Finance and Invesco Trust for Investment Grade New York Municipals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Technology Finance	2	3	0	0	1.60
Invesco Trust for Investment Grade New York Municipals	0	0	0	0	N/A

Horizon Technology Finance presently has a consensus target price of $10.80, indicating a potential downside of 5.01%. Given Horizon Technology Finance’s higher possible upside, research analysts plainly believe Horizon Technology Finance is more favorable than Invesco Trust for Investment Grade New York Municipals.

Dividends

Horizon Technology Finance pays an annual dividend of $1.32 per share and has a dividend yield of 11.6%. Invesco Trust for Investment Grade New York Municipals pays an annual dividend of $0.40 per share and has a dividend yield of 3.7%. Horizon Technology Finance pays out -269.4% of its earnings in the form of a dividend.

Risk and Volatility

Horizon Technology Finance has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Invesco Trust for Investment Grade New York Municipals has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Profitability

This table compares Horizon Technology Finance and Invesco Trust for Investment Grade New York Municipals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Horizon Technology Finance	-15.14%	18.24%	7.77%
Invesco Trust for Investment Grade New York Municipals	N/A	N/A	N/A

Insider and Institutional Ownership

4.9% of Horizon Technology Finance shares are owned by institutional investors. Comparatively, 34.9% of Invesco Trust for Investment Grade New York Municipals shares are owned by institutional investors. 1.5% of Horizon Technology Finance shares are owned by company insiders. Comparatively, 1.0% of Invesco Trust for Investment Grade New York Municipals 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

Horizon Technology Finance beats Invesco Trust for Investment Grade New York Municipals on 8 of the 10 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 Invesco Trust for Investment Grade New York Municipals

Invesco Trust for Investment Grade New York Municipals is a closed-ended fixed income mutual fund launched by Invesco Ltd. The fund is co-managed by Invesco Advisers, Inc., INVESCO Asset Management (Japan) Limited, INVESCO Asset Management Deutschland GmbH, INVESCO Asset Management Limited, Invesco Canada Ltd., Invesco Hong Kong Limited, and INVESCO Senior Secured Management, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in investment grade New York municipal securities which include municipal bonds, municipal notes, municipal commercial paper, and lease obligations. It employs fundamental analysis with bottom-up security selection approach to create its portfolio. The fund was formerly known as Invesco Van Kampen Trust for Investment Grade New York Municipals. Invesco Trust for Investment Grade New York Municipals was formed on March 27, 1992 and is domiciled in the United States.