Horizon Technology Finance (HRZN) Competitors

Horizon Technology Finance (NASDAQ:HRZN) and Capital Southwest (NASDAQ:CSWC) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, media sentiment, earnings, dividends, valuation and profitability.

Which has higher valuation and earnings, HRZN or CSWC?

Capital Southwest has higher revenue and earnings than Horizon Technology Finance. Horizon Technology Finance is trading at a lower price-to-earnings ratio than Capital Southwest, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Horizon Technology Finance	$99.92M	3.04	-$5.63M	-$0.91	-8.27
Capital Southwest	$204.44M	5.98	$70.55M	$1.48	15.38

Which has more volatility & risk, HRZN or CSWC?

Horizon Technology Finance has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Capital Southwest has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500.

Does the media prefer HRZN or CSWC?

In the previous week, Capital Southwest had 1 more articles in the media than Horizon Technology Finance. MarketBeat recorded 5 mentions for Capital Southwest and 4 mentions for Horizon Technology Finance. Capital Southwest's average media sentiment score of 1.00 beat Horizon Technology Finance's score of 0.98 indicating that Capital Southwest is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Horizon Technology Finance	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Capital Southwest	2 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Do insiders and institutionals have more ownership in HRZN or CSWC?

4.9% of Horizon Technology Finance shares are held by institutional investors. Comparatively, 23.4% of Capital Southwest shares are held by institutional investors. 1.3% of Horizon Technology Finance shares are held by insiders. Comparatively, 2.8% of Capital Southwest shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Is HRZN or CSWC more profitable?

Capital Southwest has a net margin of 34.51% compared to Horizon Technology Finance's net margin of -36.34%. Capital Southwest's return on equity of 14.40% beat Horizon Technology Finance's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Horizon Technology Finance	-36.34%	13.98%	5.75%
Capital Southwest	34.51%	14.40%	6.93%

Do analysts recommend HRZN or CSWC?

Horizon Technology Finance currently has a consensus target price of $8.45, suggesting a potential upside of 12.29%. Capital Southwest has a consensus target price of $23.60, suggesting a potential upside of 3.67%. Given Horizon Technology Finance's higher possible upside, research analysts plainly believe Horizon Technology Finance is more favorable than Capital Southwest.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Horizon Technology Finance	2 Sell rating(s)	2 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	1.80
Capital Southwest	0 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	3.00

Is HRZN or CSWC a better dividend stock?

Horizon Technology Finance pays an annual dividend of $1.32 per share and has a dividend yield of 17.5%. Capital Southwest pays an annual dividend of $2.32 per share and has a dividend yield of 10.2%. Horizon Technology Finance pays out -145.1% of its earnings in the form of a dividend. Capital Southwest pays out 156.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Capital Southwest has increased its dividend for 2 consecutive years. Horizon Technology Finance is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Capital Southwest beats Horizon Technology Finance on 16 of the 20 factors compared between the two stocks.