Horizon Technology Finance (NASDAQ:HRZN) and Putnam Municipal Opportunities Trust (NYSE:PMO) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, analyst recommendations, profitability, dividends, institutional ownership and risk.
Earnings & Valuation
This table compares Horizon Technology Finance and Putnam Municipal Opportunities Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horizon Technology Finance||$46.03 million||7.12||$6.36 million||$1.18||13.88|
|Putnam Municipal Opportunities Trust||N/A||N/A||N/A||N/A||N/A|
Institutional and Insider Ownership
10.0% of Horizon Technology Finance shares are owned by institutional investors. Comparatively, 11.6% of Putnam Municipal Opportunities Trust shares are owned by institutional investors. 1.7% of Horizon Technology Finance shares are owned by insiders. Comparatively, 0.0% of Putnam Municipal Opportunities Trust shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Volatility and Risk
Horizon Technology Finance has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Putnam Municipal Opportunities Trust has a beta of 0.3, meaning that its stock price is 70% less volatile than the S&P 500.
Horizon Technology Finance pays an annual dividend of $1.20 per share and has a dividend yield of 7.3%. Putnam Municipal Opportunities Trust pays an annual dividend of $0.64 per share and has a dividend yield of 4.5%. Horizon Technology Finance pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Horizon Technology Finance has raised its dividend for 1 consecutive years and Putnam Municipal Opportunities Trust has raised its dividend for 1 consecutive years.
This is a summary of current ratings for Horizon Technology Finance and Putnam Municipal Opportunities Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Technology Finance||1||3||1||0||2.00|
|Putnam Municipal Opportunities Trust||0||0||0||0||N/A|
Horizon Technology Finance presently has a consensus price target of $12.50, indicating a potential downside of 23.69%. Given Horizon Technology Finance’s higher probable upside, equities research analysts plainly believe Horizon Technology Finance is more favorable than Putnam Municipal Opportunities Trust.
This table compares Horizon Technology Finance and Putnam Municipal Opportunities Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Technology Finance||24.23%||10.18%||5.12%|
|Putnam Municipal Opportunities Trust||N/A||N/A||N/A|
Horizon Technology Finance beats Putnam Municipal Opportunities Trust on 9 of the 11 factors compared between the two stocks.
About Horizon Technology Finance
Horizon Technology Finance Corp. operates as a finance company. The firm engages in the provision of capital in the form of secured loans to venture capital backed companies. It also involves in lending and investing in portfolio companies in technology, life science, healthcare information and services and cleantech industries. The company was founded on March 16, 2010 and is headquartered in Farmington, CT.
About Putnam Municipal Opportunities Trust
Putnam Municipal Opportunities Trust is a closed ended fixed income mutual fund launched and managed by Putnam Investment Management, LLC. The fund is co-managed by Putnam Investments Limited. It invests in fixed income markets of United States. The fund invests in companies operating across healthcare, utilities, transportation, water and sewer, and housing sectors. Putnam Municipal Opportunities Trust was formed in 1993 and is domiciled in United States.
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