WHF vs. CSWC, TCPC, SLRC, FDUS, GAIN, GLAD, PNNT, DHIL, HRZN, and SCM
Should you be buying WhiteHorse Finance stock or one of its competitors? The main competitors of WhiteHorse Finance include Capital Southwest (CSWC), BlackRock TCP Capital (TCPC), SLR Investment (SLRC), Fidus Investment (FDUS), Gladstone Investment (GAIN), Gladstone Capital (GLAD), PennantPark Investment (PNNT), Diamond Hill Investment Group (DHIL), Horizon Technology Finance (HRZN), and Stellus Capital Investment (SCM). These companies are all part of the "asset management & custody banks" industry.
Capital Southwest (NASDAQ:CSWC) and WhiteHorse Finance (NASDAQ:WHF) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their media sentiment, community ranking, valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.
Capital Southwest pays an annual dividend of $2.28 per share and has a dividend yield of 8.9%. WhiteHorse Finance pays an annual dividend of $1.54 per share and has a dividend yield of 12.0%. Capital Southwest pays out 111.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WhiteHorse Finance pays out 187.8% 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 raised its dividend for 1 consecutive years and WhiteHorse Finance has raised its dividend for 2 consecutive years. WhiteHorse Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Capital Southwest has higher revenue and earnings than WhiteHorse Finance. Capital Southwest is trading at a lower price-to-earnings ratio than WhiteHorse Finance, indicating that it is currently the more affordable of the two stocks.
Capital Southwest currently has a consensus target price of $25.50, suggesting a potential downside of 0.31%. WhiteHorse Finance has a consensus target price of $12.81, suggesting a potential downside of 0.29%. Given Capital Southwest's higher probable upside, analysts clearly believe WhiteHorse Finance is more favorable than Capital Southwest.
23.4% of Capital Southwest shares are held by institutional investors. Comparatively, 13.2% of WhiteHorse Finance shares are held by institutional investors. 4.8% of Capital Southwest shares are held by company insiders. Comparatively, 2.3% of WhiteHorse Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Capital Southwest has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500. Comparatively, WhiteHorse Finance has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.
In the previous week, WhiteHorse Finance had 4 more articles in the media than Capital Southwest. MarketBeat recorded 8 mentions for WhiteHorse Finance and 4 mentions for Capital Southwest. WhiteHorse Finance's average media sentiment score of 0.85 beat Capital Southwest's score of 0.77 indicating that Capital Southwest is being referred to more favorably in the media.
WhiteHorse Finance received 78 more outperform votes than Capital Southwest when rated by MarketBeat users. However, 62.02% of users gave Capital Southwest an outperform vote while only 61.39% of users gave WhiteHorse Finance an outperform vote.
Capital Southwest has a net margin of 46.81% compared to Capital Southwest's net margin of 18.40%. WhiteHorse Finance's return on equity of 15.88% beat Capital Southwest's return on equity.
Summary
Capital Southwest beats WhiteHorse Finance on 12 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WHF and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
Skip ChartThis chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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