WhiteHorse Finance (NASDAQ: WHF) is one of 558 publicly-traded companies in the “Closed End Funds” industry, but how does it compare to its competitors? We will compare WhiteHorse Finance to related businesses based on the strength of its analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Insider & Institutional Ownership
9.4% of WhiteHorse Finance shares are owned by institutional investors. Comparatively, 23.8% of shares of all “Closed End Funds” companies are owned by institutional investors. 1.4% of WhiteHorse Finance shares are owned by company insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares WhiteHorse Finance and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|WhiteHorse Finance||$53.85 million||$31.32 million||7.23|
|WhiteHorse Finance Competitors||$238.79 million||$43.51 million||196.20|
WhiteHorse Finance’s competitors have higher revenue and earnings than WhiteHorse Finance. WhiteHorse Finance is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This table compares WhiteHorse Finance and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WhiteHorse Finance Competitors||-35.43%||6.98%||5.44%|
This is a summary of current ratings for WhiteHorse Finance and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WhiteHorse Finance Competitors||232||1561||1911||31||2.47|
WhiteHorse Finance presently has a consensus price target of $15.00, suggesting a potential upside of 11.52%. As a group, “Closed End Funds” companies have a potential upside of 55.43%. Given WhiteHorse Finance’s competitors stronger consensus rating and higher possible upside, analysts clearly believe WhiteHorse Finance has less favorable growth aspects than its competitors.
Volatility and Risk
WhiteHorse Finance has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, WhiteHorse Finance’s competitors have a beta of 0.56, meaning that their average stock price is 44% less volatile than the S&P 500.
WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 10.6%. 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. As a group, “Closed End Funds” companies pay a dividend yield of 8.3% and pay out 89.7% of their earnings in the form of a dividend. WhiteHorse Finance is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
WhiteHorse Finance competitors beat WhiteHorse Finance on 9 of the 15 factors compared.
About WhiteHorse Finance
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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