Horizon Technology Finance (NASDAQ:HRZN) and The Bank of New York Mellon (NYSE:BK) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.
Earnings & Valuation
This table compares Horizon Technology Finance and The Bank of New York Mellon's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Horizon Technology Finance | $43.13 million | 7.00 | $19.50 million | $1.52 | 10.10 |
| The Bank of New York Mellon | $20.77 billion | 2.15 | $4.44 billion | $4.02 | 12.69 |
The Bank of New York Mellon has higher revenue and earnings than Horizon Technology Finance. Horizon Technology Finance is trading at a lower price-to-earnings ratio than The Bank of New York Mellon, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Horizon Technology Finance and The Bank of New York Mellon, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Horizon Technology Finance | 1 | 3 | 1 | 0 | 2.00 |
| The Bank of New York Mellon | 0 | 5 | 10 | 0 | 2.67 |
Horizon Technology Finance currently has a consensus target price of $12.50, indicating a potential downside of 18.57%. The Bank of New York Mellon has a consensus target price of $49.80, indicating a potential downside of 2.41%. Given The Bank of New York Mellon's stronger consensus rating and higher probable upside, analysts plainly believe The Bank of New York Mellon is more favorable than Horizon Technology Finance.
Volatility & Risk
Horizon Technology Finance has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, The Bank of New York Mellon has a beta of 1.07, indicating that its stock price is 7% more volatile than the S&P 500.
Dividends
Horizon Technology Finance pays an annual dividend of $1.20 per share and has a dividend yield of 7.8%. The Bank of New York Mellon pays an annual dividend of $1.24 per share and has a dividend yield of 2.4%. Horizon Technology Finance pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. The Bank of New York Mellon pays out 30.8% of its earnings in the form of a dividend. Horizon Technology Finance has raised its dividend for 1 consecutive years and The Bank of New York Mellon has raised its dividend for 1 consecutive years.
Profitability
This table compares Horizon Technology Finance and The Bank of New York Mellon's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Horizon Technology Finance | 21.85% | 11.89% | 6.18% |
| The Bank of New York Mellon | 23.09% | 9.89% | 0.89% |
Institutional and Insider Ownership
7.1% of Horizon Technology Finance shares are held by institutional investors. Comparatively, 82.3% of The Bank of New York Mellon shares are held by institutional investors. 1.6% of Horizon Technology Finance shares are held by company insiders. Comparatively, 0.1% of The Bank of New York Mellon shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
The Bank of New York Mellon beats Horizon Technology Finance on 9 of the 16 factors compared between the two stocks.
