Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) and Nuveen Municipal Income Fund (NYSE:NMI – Get Free Report) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Insider & Institutional Ownership
4.9% of Horizon Technology Finance shares are owned by institutional investors. Comparatively, 16.6% of Nuveen Municipal Income Fund shares are owned by institutional investors. 1.4% of Horizon Technology Finance shares are owned by insiders. Comparatively, 1.0% of Nuveen Municipal Income Fund shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Horizon Technology Finance and Nuveen Municipal Income Fund”s top-line revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Horizon Technology Finance | -$15.38 million | -24.33 | -$17.18 million | ($0.42) | -25.43 |
Nuveen Municipal Income Fund | $4.57 million | 22.01 | N/A | N/A | N/A |
Dividends
Horizon Technology Finance pays an annual dividend of $1.32 per share and has a dividend yield of 12.4%. Nuveen Municipal Income Fund pays an annual dividend of $0.42 per share and has a dividend yield of 4.2%. Horizon Technology Finance pays out -314.3% of its earnings in the form of a dividend.
Analyst Ratings
This is a breakdown of recent ratings for Horizon Technology Finance and Nuveen Municipal Income Fund, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Horizon Technology Finance | 3 | 3 | 0 | 0 | 1.50 |
Nuveen Municipal Income Fund | 0 | 0 | 0 | 0 | N/A |
Horizon Technology Finance currently has a consensus price target of $9.70, indicating a potential downside of 9.18%. Given Horizon Technology Finance’s higher probable upside, analysts plainly believe Horizon Technology Finance is more favorable than Nuveen Municipal Income Fund.
Profitability
This table compares Horizon Technology Finance and Nuveen Municipal Income Fund’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Horizon Technology Finance | -21.19% | 17.39% | 7.26% |
Nuveen Municipal Income Fund | N/A | N/A | N/A |
Volatility and Risk
Horizon Technology Finance has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Nuveen Municipal Income Fund has a beta of 0.24, meaning that its share price is 76% less volatile than the S&P 500.
Summary
Horizon Technology Finance beats Nuveen Municipal Income Fund on 7 of the 11 factors compared between the two stocks.
About Horizon Technology Finance
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
About Nuveen Municipal Income Fund
Nuveen Municipal Income Fund, Inc. is a closed ended fixed income mutual fund launched by Nuveen Investments Inc. The fund is co-managed by Nuveen Fund Advisors LLC and Nuveen Asset Management, LLC. It invests in the fixed income markets of the United States. The fund primarily invests in municipal obligations issued by state and local government authorities. Its investment portfolio comprises investment in companies operating in various industries, including healthcare, materials, education and civic organizations, and consumer staples. Nuveen Municipal Income Fund was formed on April 20, 1988 and is based in the United States.
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