Direct investigation: Horizon Technology Finance (NASDAQ: HRZN) v John Hancock Financial Opportunities Fund (NYSE: BTO)


The John Hancock Financial Opportunities Fund (NYSE: BTO – Get Rating) and Horizon Technology Finance (NASDAQ: HRZN – Get Rating) are both financial companies with a small capitalization, but which is the best investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, profits, valuation and risk.

profitability

This table compares net margins, return on equity and return on assets of the John Hancock Financial Opportunities Fund and Horizon Technology Finance.

Net margins Return on equity Return on assets
John Hancock Financial Opportunity Fund N / A N / A N / A
Horizon Technology Finance 41,45% 11.32% 5.55%

Volatility and risk

The John Hancock Financial Opportunities Fund has a beta of 1.64, which means that its share price is 64% more variable than the S&P 500. By comparison, Horizon Technology Finance has a beta of 1.02, which means that the price of its shares are 2% more volatile than the S&P 500

Profits and valuation

This table compares the main revenues of the John Hancock Financial Opportunities Fund and Horizon Technology Finance, earnings per share and valuation.

Gross income Price / sale ratio Net income Earnings per share Price / profit ratio
John Hancock Financial Opportunity Fund N / A N / A N / A N / A N / A
Horizon Technology Finance $ 60.01 million 4.76 $ 27.78 million $ 1.24 9.61

Horizon Technology Finance has higher revenues and profits than the John Hancock Financial Opportunities Fund.

Internal and institutional ownership

18.1% of the shares of the John Hancock Financial Opportunities Fund are held by institutional investors. By comparison, 11.3% of Horizon Technology Finance shares are held by institutional investors. 1.5% of Horizon Technology Finance shares are held by insiders. Strong institutional ownership is an indication that big managers of money, donations and hedge funds believe that a company is ready for long-term growth.

Dividends

The John Hancock Financial Opportunities Fund pays an annual dividend of $ 2.20 per share and has a dividend yield of 5.9%. Horizon Technology Finance pays an annual dividend of $ 1.20 per share and has a dividend yield of 10.1%. Horizon Technology Finance pays 96.8% of its profits in the form of dividends, which suggests that there may not be enough income to cover the payment of dividends in the future. The John Hancock Financial Opportunities Fund increased its dividend for one consecutive year.

Analyst ratings

This is a breakdown of the latest ratings and price targets for the John Hancock Financial Opportunities Fund and Horizon Technology Finance, as provided by MarketBeat.com.

Sales ratings Keep ratings Buy ratings Strong buying ratings Rating
John Hancock Financial Opportunity Fund 0 0 0 0 N / A
Horizon Technology Finance 0 2 0 0 2.00

Horizon Technology Finance has a consensus target price of $ 15.50, which shows a potential increase of 30.03%. Given Horizon Technology Finance’s greater likely rise, analysts clearly believe that Horizon Technology Finance is more favorable than the John Hancock Financial Opportunities Fund.

Summary

Horizon Technology Finance is ahead of the John Hancock Financial Opportunities Fund in 7 of the 11 factors compared between the two stocks.

About the John Hancock Fund for Financial Opportunities (Get an estimate)

The John Hancock Financial Opportunities Fund is a closed-end mutual fund launched and managed by John Hancock Investment Management LLC. It is co-managed by John Hancock Asset Management. The fund invests in public stock markets around the world. He seeks to invest in shares of companies operating in the financial services sector. The fund invests in companies of all market capitalizations. He compares the performance of his portfolio against the S&P Composite 1500 Banks index. The fund was formerly known as the John Hancock Bank and the Thrift Opportunity Fund. The John Hancock Financial Opportunities Fund was established on August 23, 1994 and is headquartered in the United States.

About Horizon Technology Finance (Get an estimate)

Horizon Technology Finance Corporation is a business development company specializing in lending and investing in development investments. It focuses on investing in secured debt and risky lending to companies backed by venture capital in technology, life sciences, information and health services and clean technologies. It seeks to invest in companies in the United States.



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