07/10/2022

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Head-To-Head Review: Horizon Technology Finance (NASDAQ:HRZN) versus John Hancock Financial Opportunities Fund (NYSE:BTO)

John Hancock Financial Opportunities Fund (NYSE:BTOGet Rating) and Horizon Technology Finance (NASDAQ:HRZNGet Rating) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Insider and Institutional Ownership

18.1% of John Hancock Financial Opportunities Fund shares are owned by institutional investors. Comparatively, 11.3% of Horizon Technology Finance shares are owned by institutional investors. 1.5% of Horizon Technology Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

John Hancock Financial Opportunities Fund has a beta of 1.64, suggesting that its share price is 64% more volatile than the S&P 500. Comparatively, Horizon Technology Finance has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Profitability

This table compares John Hancock Financial Opportunities Fund and Horizon Technology Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
John Hancock Financial Opportunities Fund N/A N/A N/A
Horizon Technology Finance 41.45% 11.32% 5.55%

Dividends

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 out 96.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. John Hancock Financial Opportunities Fund has increased its dividend for 1 consecutive years.

Earnings & Valuation

This table compares John Hancock Financial Opportunities Fund and Horizon Technology Finance’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
John Hancock Financial Opportunities Fund N/A N/A N/A N/A N/A
Horizon Technology Finance $60.01 million 4.76 $27.78 million $1.24 9.61

Horizon Technology Finance has higher revenue and earnings than John Hancock Financial Opportunities Fund.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for John Hancock Financial Opportunities Fund and Horizon Technology Finance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
John Hancock Financial Opportunities Fund 0 0 0 0 N/A
Horizon Technology Finance 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 Horizon Technology Finance’s higher possible upside, analysts clearly believe Horizon Technology Finance is more favorable than John Hancock Financial Opportunities Fund.

Summary

Horizon Technology Finance beats John Hancock Financial Opportunities Fund on 7 of the 11 factors compared between the two stocks.

About John Hancock Financial Opportunities Fund (Get Rating)

John Hancock Financial Opportunities Fund is a closed-ended 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 the public equity markets across the globe. It seeks to invest in the stocks of companies operating across the financial services sector. The fund invests in companies across all market capitalizations. It benchmarks the performance of its portfolio against the S&P Composite 1500 Banks Index. The fund was formerly known as John Hancock Bank and Thrift Opportunity Fund. John Hancock Financial Opportunities Fund was formed on August 23, 1994 and is domiciled in the United States.

About Horizon Technology Finance (Get Rating)

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, and cleantech industries. It seeks to invest in companies in the United States.

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