Horizon Technology Finance Corporation (HRZN) vs BLACKROCK TCP CAPITAL CORP. (TCPC)

Horizon Technology Finance Corporation and BLACKROCK TCP CAPITAL CORP. are both Asset Management companies. Horizon Technology Finance Corporation and BLACKROCK TCP CAPITAL CORP. are of similar size ($335.6M and $309.0M). BLACKROCK TCP CAPITAL CORP. has negative trailing earnings, so its P/E is not meaningful; Horizon Technology Finance Corporation trades at 11.6×. Horizon Technology Finance Corporation grew revenue faster over the last twelve months: −1.07% against −26.1%. Horizon Technology Finance Corporation has the higher net margin (5.27% vs −61.3%) and the higher return on invested capital (16.6% vs 4.15%). Both pay a dividend; BLACKROCK TCP CAPITAL CORP. yields more (11.9% vs 10.1%). Across the 20 metrics below, Horizon Technology Finance Corporation leads on 13 and BLACKROCK TCP CAPITAL CORP. on 7.

Valuation

Metric HRZN TCPC Asset Management median
P/E 11.58 n/m 14.62
P/S 3.13 1.90 2.97
P/B 0.72 0.61 0.94
Price to free cash flow 2.96 0.84 8.93
EV/EBITDA 2.41 9.32 10.32
EV/Sales 2.35 6.15 5.72
Earnings yield 8.64% (31.92%) 4.53%
Free cash flow yield 33.78% 118.78% 4.65%

Profitability

Metric HRZN TCPC Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 94.88% 84.51% 33.03%
Net margin 5.27% (61.27%) 13.53%
Free cash flow margin 105.73% 225.77% 12.44%
Return on equity 1.45% (16.78%) 4.83%
Return on assets 0.65% (6.36%) 1.57%
Return on invested capital 16.64% 4.15% 3.04%

Growth

Metric HRZN TCPC Asset Management median
Revenue growth (TTM) (1.07%) (26.09%) 6.97%
EPS growth (last fiscal year) 62.50% (32.91%) —
Revenue growth, 5-year CAGR 15.84% 3.23% 12.13%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HRZN TCPC Asset Management median
Debt to equity 0.00 1.65 0.42
Current ratio 0.21 29.31 1.28
Net debt to EBITDA (1.12) 11.05 1.06

Dividend

Metric HRZN TCPC Asset Management median
Dividend yield 10.05% 11.88% 6.92%
Payout ratio 2.25 4.27 0.77

Size

Metric HRZN TCPC Asset Management median
Market cap 309.03m 335.61m 721.34m

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