Horizon Technology Finance Corporation (HRZN) vs Runway Growth Finance Corp. (RWAY)

Horizon Technology Finance Corporation and Runway Growth Finance Corp. are both Asset Management companies. Horizon Technology Finance Corporation and Runway Growth Finance Corp. are of similar size ($309.0M and $282.1M). Horizon Technology Finance Corporation trades at the lower P/E: 11.6× against 61.6×. Horizon Technology Finance Corporation grew revenue faster over the last twelve months: −1.07% against −5.47%. Runway Growth Finance Corp. has the higher net margin (5.82% vs 5.27%) and the lower return on invested capital (2.96% vs 16.6%). Both pay a dividend; Runway Growth Finance Corp. yields more (13.4% vs 10.1%). Across the 21 metrics below, Horizon Technology Finance Corporation leads on 13 and Runway Growth Finance Corp. on 8.

Valuation

Metric HRZN RWAY Asset Management median
P/E 11.58 61.64 14.62
P/S 3.13 2.14 2.97
P/B 0.72 0.57 0.94
Price to free cash flow 2.96 n/m 8.93
EV/EBITDA 2.41 10.13 10.32
EV/Sales 2.35 7.27 5.72
Earnings yield 8.64% 1.62% 4.53%
Free cash flow yield 33.78% (26.42%) 4.65%

Profitability

Metric HRZN RWAY Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 94.88% 75.26% 33.03%
Net margin 5.27% 5.82% 13.53%
Free cash flow margin 105.73% (56.56%) 12.44%
Return on equity 1.45% 1.55% 4.83%
Return on assets 0.65% 0.69% 1.57%
Return on invested capital 16.64% 2.96% 3.04%

Growth

Metric HRZN RWAY Asset Management median
Revenue growth (TTM) (1.07%) (5.47%) 6.97%
EPS growth (last fiscal year) 62.50% (50.79%) —
Revenue growth, 5-year CAGR 15.84% 18.97% 12.13%
Net income growth, 5-year CAGR 0.00% (6.24%) 0.00%

Health

Metric HRZN RWAY Asset Management median
Debt to equity 0.00 1.38 0.42
Current ratio 0.21 0.93 1.28
Net debt to EBITDA (1.12) 4.42 1.06

Dividend

Metric HRZN RWAY Asset Management median
Dividend yield 10.05% 13.44% 6.92%
Payout ratio 2.25 1.00 0.77

Size

Metric HRZN RWAY Asset Management median
Market cap 309.03m 282.05m 721.34m

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