Horizon Technology Finance Corporation (HRZN) vs Stellus Capital Investment Corporation (SCM)

Horizon Technology Finance Corporation and Stellus Capital Investment Corporation are both Asset Management companies. Horizon Technology Finance Corporation is the larger, with a market value of $265.5M against $205.6M — 1.3× the size. Horizon Technology Finance Corporation has negative trailing earnings, so its P/E is not meaningful; Stellus Capital Investment Corporation trades at 7.1×. Horizon Technology Finance Corporation grew revenue faster over the last twelve months: −1.07% against −5.52%. Stellus Capital Investment Corporation has the higher net margin (30.7% vs 0.00%) and the higher return on invested capital (2.12% vs 0.00%). Both pay a dividend; Horizon Technology Finance Corporation yields more (18.8% vs 17.7%). Across the 19 metrics below, Stellus Capital Investment Corporation leads on 11 and Horizon Technology Finance Corporation on 8.

Valuation

Metric HRZN SCM Asset Management median
P/E n/m 7.08 13.38
P/S 2.72 2.15 2.99
P/B 0.72 0.57 0.91
Price to free cash flow 5.01 4.63 7.79
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (18.78%) 14.13% 4.67%
Free cash flow yield 19.95% 21.58% 4.85%

Profitability

Metric HRZN SCM Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 94.88% 70.04% 27.27%
Net margin 0.00% 30.66% 11.89%
Free cash flow margin 0.00% 46.33% 5.96%
Return on equity (15.90%) 8.02% 4.57%
Return on assets (7.01%) 2.95% 1.40%
Return on invested capital 0.00% 2.12% 2.12%

Growth

Metric HRZN SCM Asset Management median
Revenue growth (TTM) (1.07%) (5.52%) 7.26%
EPS growth (last fiscal year) 62.50% (46.93%) (5.64%)
Revenue growth, 5-year CAGR 15.84% 12.51% 11.84%
Net income growth, 5-year CAGR 0.00% 6.02% 0.00%

Health

Metric HRZN SCM Asset Management median
Debt to equity 0.00 1.63 0.40
Current ratio 0.08 0.06 1.23
Net debt to EBITDA (1.12) 8.41 1.06

Dividend

Metric HRZN SCM Asset Management median
Dividend yield 18.78% 17.72% 6.43%
Payout ratio 2.06 1.25 0.91

Size

Metric HRZN SCM Asset Management median
Market cap 265.46m 205.62m 692.54m

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