Gladstone Capital Corporation (GLAD) vs Horizon Technology Finance Corporation (HRZN)

Gladstone Capital Corporation and Horizon Technology Finance Corporation are both Asset Management companies. Gladstone Capital Corporation is the larger, with a market value of $434.2M against $309.0M — 1.4× the size. Gladstone Capital Corporation trades at the lower P/E: 9.0× against 11.6×. Gladstone Capital Corporation grew revenue faster over the last twelve months: 11.3% against −1.07%. Gladstone Capital Corporation has the higher net margin (48.7% vs 5.27%) and the lower return on invested capital (5.89% vs 16.6%). Both pay a dividend; Horizon Technology Finance Corporation yields more (10.1% vs 9.75%). Across the 19 metrics below, Horizon Technology Finance Corporation leads on 13 and Gladstone Capital Corporation on 6.

Valuation

Metric GLAD HRZN Asset Management median
P/E 9.05 11.58 14.62
P/S 4.42 3.13 2.97
P/B 0.90 0.72 0.94
Price to free cash flow n/m 2.96 8.93
EV/EBITDA 10.51 2.41 10.32
EV/Sales 6.55 2.35 5.72
Earnings yield 11.05% 8.64% 4.53%
Free cash flow yield (34.47%) 33.78% 4.65%

Profitability

Metric GLAD HRZN Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 70.28% 94.88% 33.03%
Net margin 48.67% 5.27% 13.53%
Free cash flow margin (152.38%) 105.73% 12.44%
Return on equity 10.03% 1.45% 4.83%
Return on assets 5.50% 0.65% 1.57%
Return on invested capital 5.89% 16.64% 3.04%

Growth

Metric GLAD HRZN Asset Management median
Revenue growth (TTM) 11.29% (1.07%) 6.97%
EPS growth (last fiscal year) (41.24%) 62.50% —
Revenue growth, 5-year CAGR 13.19% 15.84% 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GLAD HRZN Asset Management median
Debt to equity 0.00 0.00 0.42
Current ratio 0.03 0.21 1.28
Net debt to EBITDA (0.30) (1.12) 1.06

Dividend

Metric GLAD HRZN Asset Management median
Dividend yield 9.75% 10.05% 6.92%
Payout ratio 0.91 2.25 0.77

Size

Metric GLAD HRZN Asset Management median
Market cap 434.24m 309.03m 721.34m

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