Horizon Technology Finance (NASDAQ:HRZN) and The Herzfeld Caribbean Basin Fund (NASDAQ:CUBA) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Volatility and Risk
Horizon Technology Finance has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, The Herzfeld Caribbean Basin Fund has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.
Horizon Technology Finance pays an annual dividend of $1.20 per share and has a dividend yield of 7.4%. The Herzfeld Caribbean Basin Fund pays an annual dividend of $0.84 per share and has a dividend yield of 14.8%. Horizon Technology Finance pays out 85.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Horizon Technology Finance has increased its dividend for 1 consecutive years and The Herzfeld Caribbean Basin Fund has increased its dividend for 1 consecutive years.
This is a breakdown of current ratings and target prices for Horizon Technology Finance and The Herzfeld Caribbean Basin Fund, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Technology Finance||0||2||1||0||2.33|
|The Herzfeld Caribbean Basin Fund||0||0||0||0||N/A|
Horizon Technology Finance presently has a consensus price target of $14.50, suggesting a potential downside of 10.88%. Given Horizon Technology Finance’s higher possible upside, research analysts clearly believe Horizon Technology Finance is more favorable than The Herzfeld Caribbean Basin Fund.
This table compares Horizon Technology Finance and The Herzfeld Caribbean Basin Fund’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Technology Finance||52.53%||10.79%||5.24%|
|The Herzfeld Caribbean Basin Fund||N/A||N/A||N/A|
Earnings and Valuation
This table compares Horizon Technology Finance and The Herzfeld Caribbean Basin Fund’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horizon Technology Finance||$46.03 million||7.22||$6.36 million||$1.41||11.54|
|The Herzfeld Caribbean Basin Fund||N/A||N/A||N/A||N/A||N/A|
Horizon Technology Finance has higher revenue and earnings than The Herzfeld Caribbean Basin Fund.
Insider & Institutional Ownership
9.6% of Horizon Technology Finance shares are owned by institutional investors. Comparatively, 17.3% of The Herzfeld Caribbean Basin Fund shares are owned by institutional investors. 1.7% of Horizon Technology Finance shares are owned by company insiders. Comparatively, 9.7% of The Herzfeld Caribbean Basin Fund shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Horizon Technology Finance beats The Herzfeld Caribbean Basin Fund on 6 of the 11 factors compared between the two stocks.
About Horizon Technology Finance
Horizon Technology Finance Corp. operates as a finance company. The firm engages in the provision of capital in the form of secured loans to venture capital backed companies. It also involves in lending and investing in portfolio companies in technology, life science, healthcare information and services and cleantech industries. The company was founded on March 16, 2010 and is headquartered in Farmington, CT.
About The Herzfeld Caribbean Basin Fund
The Herzfeld Caribbean Basin Fund, Inc. operates as a non-diversified and closed-end management investment company. It invests in equity and equity-linked securities of public and private companies. The company was founded on March 10, 1992 and is headquartered in Miami Beach, FL.
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