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 ($265.5M and $256.5M). Horizon Technology Finance Corporation has negative trailing earnings, so its P/E is not meaningful; Runway Growth Finance Corp. trades at 41.1×. Horizon Technology Finance Corporation grew revenue faster over the last twelve months: −1.07% against −2.83%. Runway Growth Finance Corp. has the higher net margin (7.62% vs 0.00%) and the higher return on invested capital (7.17% vs 0.00%). Both pay a dividend; Runway Growth Finance Corp. yields more (21.4% vs 18.8%). Across the 17 metrics below, Runway Growth Finance Corp. leads on 9 and Horizon Technology Finance Corporation on 8.

Valuation

Metric HRZN RWAY Asset Management median
P/E n/m 41.13 13.38
P/S 2.72 1.89 2.99
P/B 0.72 0.52 0.91
Price to free cash flow 5.01 n/m 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (18.78%) 2.43% 4.67%
Free cash flow yield 19.95% (6.79%) 4.85%

Profitability

Metric HRZN RWAY Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 94.88% 75.20% 27.27%
Net margin 0.00% 7.62% 11.89%
Free cash flow margin 0.00% (12.79%) 5.96%
Return on equity (15.90%) 2.12% 4.57%
Return on assets (7.01%) 1.02% 1.40%
Return on invested capital 0.00% 7.17% 2.12%

Growth

Metric HRZN RWAY Asset Management median
Revenue growth (TTM) (1.07%) (2.83%) 7.26%
EPS growth (last fiscal year) 62.50% (50.79%) (5.64%)
Revenue growth, 5-year CAGR 15.84% 18.97% 11.84%
Net income growth, 5-year CAGR 0.00% (6.24%) 0.00%

Health

Metric HRZN RWAY Asset Management median
Debt to equity 0.00 0.00 0.40
Current ratio 0.08 0.00 1.23
Net debt to EBITDA (1.12) 4.42 1.06

Dividend

Metric HRZN RWAY Asset Management median
Dividend yield 18.78% 21.39% 6.43%
Payout ratio 2.06 8.80 0.91

Size

Metric HRZN RWAY Asset Management median
Market cap 265.46m 256.49m 692.54m

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