Horizon Technology Finance Corporation (HRZN) vs. Oxford Lane Capital Corp (OXLC) Financial Analysis
Horizon Technology Finance Corporation (NASDAQ: HRZN) and Oxford Lane Capital Corp (NASDAQ:OXLC) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Valuation and Earnings
This table compares Horizon Technology Finance Corporation and Oxford Lane Capital Corp’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Horizon Technology Finance Corporation||N/A||N/A||N/A||($0.16)||-66.00|
|Oxford Lane Capital Corp||N/A||N/A||N/A||N/A||N/A|
Horizon Technology Finance Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 11.4%. Oxford Lane Capital Corp does not pay a dividend. Horizon Technology Finance Corporation pays out -750.0% of its earnings in the form of a dividend.
This is a summary of recent ratings for Horizon Technology Finance Corporation and Oxford Lane Capital Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Technology Finance Corporation||2||3||0||0||1.60|
|Oxford Lane Capital Corp||0||0||1||0||3.00|
Horizon Technology Finance Corporation presently has a consensus target price of $10.33, indicating a potential downside of 2.15%. Oxford Lane Capital Corp has a consensus target price of $10.25, indicating a potential downside of 4.03%. Given Horizon Technology Finance Corporation’s higher possible upside, equities analysts plainly believe Horizon Technology Finance Corporation is more favorable than Oxford Lane Capital Corp.
This table compares Horizon Technology Finance Corporation and Oxford Lane Capital Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Technology Finance Corporation||-6.72%||10.24%||6.29%|
|Oxford Lane Capital Corp||89.48%||26.64%||16.20%|
Institutional and Insider Ownership
17.4% of Horizon Technology Finance Corporation shares are owned by institutional investors. 1.3% of Horizon Technology Finance Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Horizon Technology Finance Corporation Company Profile
Horizon Technology Finance Corporation is an externally managed, closed-end, non-diversified management investment company. The Company’s investment objective is to maximize investment portfolio’s total return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. It lends to and invests in development-stage companies in the technology, life science, healthcare information and services and cleantech industries (collectively Target Industries). It is focused on making secured debt investments (Venture Loans) to venture capital backed companies in its Target Industries. As of December 31, 2016, its debt investment portfolio consisted of 44 debt investments. As of December 31, 2016, the Company held warrants to purchase stock, predominantly preferred stock, in 78 portfolio companies, equity positions in five portfolio companies and success fee arrangements in 11 portfolio companies.
Oxford Lane Capital Corp Company Profile
Oxford Lane Capital Corp. is a non-diversified closed-end management investment company. The Fund’s investment objective is to maximize its portfolio’s risk adjusted total return and seeks to achieve its investment objective by investing in structured finance investments, specifically collateralized loan obligation (CLO) vehicles, which primarily own senior corporate debt securities. The Fund holds debt investments in over three different CLO structures and equity investments in approximately 30 different CLO structures. Its investment strategy also includes investing in warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle. The Fund may also invest, on an opportunistic basis, in corporate debt securities on a direct basis and a range of other corporate credits. Oxford Lane Management, LLC (OXLC Management) is the investment advisor of the Fund.
Receive News & Ratings for Horizon Technology Finance Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Horizon Technology Finance Corporation and related companies with MarketBeat.com's FREE daily email newsletter.