Horizon Technology Finance Corporation (HRZN) vs Saratoga Investment Corp (SAR)

Horizon Technology Finance Corporation and Saratoga Investment Corp are both Asset Management companies. Horizon Technology Finance Corporation is the larger, with a market value of $309.0M against $278.7M — 1.1× the size. Horizon Technology Finance Corporation trades at the lower P/E: 11.6× against 17.1×. Horizon Technology Finance Corporation grew revenue faster over the last twelve months: −1.07% against −12.9%. Saratoga Investment Corp has the higher net margin (12.7% vs 5.27%) and the lower return on invested capital (5.52% vs 16.6%). Both pay a dividend; Saratoga Investment Corp yields more (12.3% vs 10.1%). Across the 21 metrics below, Horizon Technology Finance Corporation leads on 15 and Saratoga Investment Corp on 6.

Valuation

Metric HRZN SAR Asset Management median
P/E 11.58 17.11 14.62
P/S 3.13 2.24 2.97
P/B 0.72 0.73 0.94
Price to free cash flow 2.96 n/m 8.93
EV/EBITDA 2.41 3.03 10.32
EV/Sales 2.35 2.31 5.72
Earnings yield 8.64% 5.84% 4.53%
Free cash flow yield 33.78% (52.60%) 4.65%

Profitability

Metric HRZN SAR Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 94.88% 68.26% 33.03%
Net margin 5.27% 12.70% 13.53%
Free cash flow margin 105.73% (117.81%) 12.44%
Return on equity 1.45% 4.07% 4.83%
Return on assets 0.65% 1.31% 1.57%
Return on invested capital 16.64% 5.52% 3.04%

Growth

Metric HRZN SAR Asset Management median
Revenue growth (TTM) (1.07%) (12.86%) 6.97%
EPS growth (last fiscal year) 62.50% 14.36% —
Revenue growth, 5-year CAGR 15.84% 8.36% 12.13%
Net income growth, 5-year CAGR 0.00% (4.36%) 0.00%

Health

Metric HRZN SAR Asset Management median
Debt to equity 0.00 0.19 0.42
Current ratio 0.21 0.09 1.28
Net debt to EBITDA (1.12) 0.50 1.06

Dividend

Metric HRZN SAR Asset Management median
Dividend yield 10.05% 12.27% 6.92%
Payout ratio 2.25 1.13 0.77

Size

Metric HRZN SAR Asset Management median
Market cap 309.03m 278.68m 721.34m

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