Contrast Horizon Technology Finance (NASDAQ:HRZN) and Tekla Life Sciences Investors (NYSE:HQL)


Horizon Technology Finance ( NASDAQ:HRZN – Get Rating ) and Tekla Life Sciences Investors ( NYSE:HQL – Get Rating ) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, risk, earnings and institutional ownership.

Internal and institutional ownership

11.3% of Horizon Technology Finance shares are held by institutional investors. Comparatively, 20.7% of Tekla Life Sciences Investors shares are held by institutional investors. 1.5% of Horizon Technology Finance shares are held by insiders. Comparatively, 10.1% of Tekla Life Sciences Investors shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and major financial managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Horizon Technology Finance and Tekla Life Sciences Investors as provided by MarketBeat.com.

Estimates for sale Hold the ratings Buy ratings Strong buy ratings Rating score
Horizon Technology Finance 0 2 0 0 2.00
Tekla Life Sciences Investors 0 0 0 0 N/A

Horizon Technology Finance currently has a consensus target price of $15.50, indicating a potential upside of 29.60%. Given Horizon Technology Finance’s higher possible upside, equities analysts plainly believe Horizon Technology Finance is more favorable than Tekla Life Sciences Investors.

Risk and volatility

Horizon Technology Finance has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500. In comparison, Tekla Life Sciences Investors has a beta of 0.84, indicating that its share price is 16% more slightly more volatile than the S&P 500.

Earnings and rating

This table compares Horizon Technology Finance and Tekla Life Sciences Investors’ gross revenue, earnings per share and valuation.

Gross income Price/sales ratio Net income Earnings per share Price/earnings ratio
Horizon Technology Finance $60.01 million 4.78 $27.78 million $1.24 9.65
Tekla Life Sciences Investors N/A N/A N/A N/A N/A

Horizon Technology Finance has higher revenue and earnings than Tekla Life Sciences Investors.

Profitability

This table compares the net margins, return on equity and return on assets of Horizon Technology Finance and Tekla Life Sciences Investors.

Net margins Return on capital Return on assets
Horizon Technology Finance 41.45% 11.32% 5.55%
Tekla Life Sciences Investors N/A N/A N/A

Dividends

Horizon Technology Finance pays an annual dividend of $1.20 per share and has a dividend yield of 10.0%. Tekla Life Sciences Investors pays an annual dividend of $1.59 per share and has a dividend yield of 10.5%. Horizon Technology Finance pays out 96.8% of its earnings in the form of a dividend, suggesting that it may not have enough earnings to cover its dividend payout in the future.

Summary

Horizon Technology Finance beats Tekla Life Sciences Investors on 6 of the 10 factors compared between the two stocks.

About Horizon Technology Finance (Get Rating)

Horizon Technology Finance Corporation is a business development company specializing in lending and investing in growth stage investments. It focuses on secured debt investments and venture loans for venture capital-backed companies in technology, life science, healthcare information and services and clean technology. It seeks to invest in companies in the United States.

About Tekla Life Sciences Investors (Get Rating)

Tekla Life Sciences Investors is a closed-end mutual fund launched and managed by Tekla Capital Management LLC. The fund invests in public equity markets around the world. It seeks to invest in stocks of companies operating in the life sciences sector, including biotechnology, pharmaceuticals, diagnostics, managed healthcare, medical equipment, hospitals, health information technology and services, device and consumables industries, and agriculture and environmental management industries. The fund invests primarily in small-cap growth stocks. It uses fundamental analysis with a focus on factors such as market position for services or products, business management experience, technological expertise and the ability to either generate funds internally to finance growth or secure external sources of capital to build its portfolio. The Fund compares the performance of its portfolio against the NASDAQ Biotech Index and the S&P 500 Index. It was previously known as the H&Q Life Sciences Investors fund. Tekla Life Sciences Investors was incorporated on February 20, 1992 and is headquartered in the United States.



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