WhiteHorse Finance (NASDAQ: WHF) is one of 588 publicly-traded companies in the “Closed End Funds” industry, but how does it weigh in compared to its competitors? We will compare WhiteHorse Finance to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Volatility & Risk

WhiteHorse Finance has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, WhiteHorse Finance’s competitors have a beta of 0.56, suggesting that their average stock price is 44% less volatile than the S&P 500.

Institutional and Insider Ownership

9.8% of WhiteHorse Finance shares are held by institutional investors. Comparatively, 24.0% of shares of all “Closed End Funds” companies are held by institutional investors. 1.4% of WhiteHorse Finance shares are held by company insiders. Comparatively, 5.1% of shares of all “Closed End Funds” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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 62.57% 10.57% 5.99%
WhiteHorse Finance Competitors -49.35% 6.78% 5.22%

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 10.5%. WhiteHorse Finance pays out 75.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Closed End Funds” companies pay a dividend yield of 7.7% and pay out 152.9% 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.

Analyst Recommendations

This is a summary of current ratings and target prices for WhiteHorse Finance and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 0 1 0 0 2.00
WhiteHorse Finance Competitors 219 1549 1894 31 2.47

WhiteHorse Finance currently has a consensus target price of $15.00, indicating a potential upside of 11.03%. As a group, “Closed End Funds” companies have a potential upside of 43.14%. Given WhiteHorse Finance’s competitors stronger consensus rating and higher possible upside, analysts plainly believe WhiteHorse Finance has less favorable growth aspects than its competitors.

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 7.15
WhiteHorse Finance Competitors $238.79 million $43.51 million 238.31

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.

Summary

WhiteHorse Finance competitors beat WhiteHorse Finance on 9 of the 15 factors compared.

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.

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