John Hancock Financial Opportunities Fund (NYSE: BTO – Get Rating) and Horizon Technology Finance (NASDAQ: HRZN – Get Rating) are both small cap financial firms, but which is the best investment? We will compare the two businesses based on their dividend strength, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Profitability
This table compares the net margins, return on equity and return on the assets of John Hancock Financial Opportunities Fund and Horizon Technology Finance.
| Net margins | Return on equity | Return on assets | |
| John Hancock Financial Opportunity Fund | N / A | N / A | N / A |
| Horizon Technology Finance | 41.45% | 11.32% | 5.55% |
Volatility and risk
John Hancock Financial Opportunities Fund has a beta of 1.64, which means that its share price is 64% more volatile than the S&P 500. By comparison, Horizon Technology Finance has a beta of 1.02, which means that the its share price is 2% more volatile than the S&P 500.
Earnings and evaluation
This table compares the earnings, earnings per share and valuation of John Hancock Financial Opportunities Fund and Horizon Technology Finance.
| Gross Income | Price / sales ratio | Net income | Earning per share | Price / earnings ratio | |
| John Hancock Financial Opportunity Fund | N / A | N / A | N / A | N / A | N / A |
| Funding for Horizon technology | $ 60.01 million | 4.76 | $ 27.78 million | $ 1.24 | 9.61 |
Horizon Technology Finance has higher income and earnings than the John Hancock Financial Opportunities Fund.
Internal and institutional ownership
18.1% of the shares of the John Hancock Financial Opportunities Fund are held by institutional investors. By comparison, 11.3% of Horizon Technology Finance’s shares are held by institutional investors. 1.5% of the shares of Horizon Technology Finance are held by insiders. Strong institutional ownership indicates that large fund, endowment and hedge fund managers believe a company is poised for long-term growth.
Dividends
The John Hancock Financial Opportunities Fund pays an annual dividend of $ 2.20 per share and has a dividend yield of 5.9%. Horizon Technology Finance pays an annual dividend of $ 1.20 per share and has a dividend yield of 10.1%. Horizon Technology Finance pays 96.8% of its earnings in the form of a dividend, suggesting it may not have enough earnings to cover the dividend payment in the future. The John Hancock Financial Opportunities Fund has increased the dividend for 1 consecutive year.
Analyst ratings
This is a breakdown of recent valuations and pricing targets for John Hancock Financial Opportunities Fund and Horizon Technology Finance, as provided by MarketBeat.com.
| Sell ratings | Keep the ratings | Buy ratings | Strong purchase ratings | Evaluation score | |
| John Hancock Financial Opportunity Fund | 0 | 0 | 0 | 0 | N / A |
| Funding for Horizon technology | 0 | 2 | 0 | 0 | 2.00 |
Horizon Technology Finance has a consensus target price of $ 15.50, indicating a potential upside of 30.03%. Given the likely more likely upside of Horizon Technology Finance, analysts clearly believe that Horizon Technology Finance is more favorable than the John Hancock Financial Opportunities Fund.
Summary
Horizon Technology Finance beats John Hancock Financial Opportunities Fund on 7 out of 11 factors compared between the two stocks.
About the John Hancock Financial Opportunities Fund (Get evaluation)
John Hancock Financial Opportunities Fund is a closed-end equity mutual fund launched and managed by John Hancock Investment Management LLC. It is co-managed by John Hancock Asset Management. The fund invests in public equity markets around the world. Try to invest in the shares of companies operating in the financial services sector. The fund invests in companies of all market capitalisations. Compare the performance of your portfolio against the S&P Composite 1500 Banks Index. The fund was formerly known as John Hancock Bank and Thrift Opportunity Fund. The John Hancock Financial Opportunities Fund was established on August 23, 1994 and is domiciled in the United States.
Learn about Horizon Technology Finance (Get evaluation)
Horizon Technology Finance Corporation is a business development company specializing in loans and investment in development investments. It focuses on the realization of secured debt and investment in venture loans to venture capital-backed companies in the fields of technology, life sciences, information and health services and clean technologies. Try to invest in companies in the United States.
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