Financial Review: WhiteHorse Finance (WHF) & NeXt Innovation Corp common stock (GSVC)

WhiteHorse Finance (NASDAQ: GSVC) and NeXt Innovation Corp common stock (NASDAQ:GSVC) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, profitability, valuation and risk.

Volatility & Risk

WhiteHorse Finance has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, NeXt Innovation Corp common stock has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500.

Profitability

This table compares WhiteHorse Finance and NeXt Innovation Corp common stock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteHorse Finance 86.68% 9.61% 5.63%
NeXt Innovation Corp common stock N/A -7.43% -3.93%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WhiteHorse Finance and NeXt Innovation Corp common stock, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 0 2 3 0 2.60
NeXt Innovation Corp common stock 0 0 1 0 3.00

WhiteHorse Finance currently has a consensus price target of $14.30, suggesting a potential downside of 1.11%. NeXt Innovation Corp common stock has a consensus price target of $11.00, suggesting a potential upside of 57.59%. Given NeXt Innovation Corp common stock’s stronger consensus rating and higher probable upside, analysts plainly believe NeXt Innovation Corp common stock is more favorable than WhiteHorse Finance.

Valuation and Earnings

This table compares WhiteHorse Finance and NeXt Innovation Corp common stock’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WhiteHorse Finance $54.80 million 5.42 $34.44 million $1.35 10.71
NeXt Innovation Corp common stock $850,000.00 168.51 $17.56 million ($0.95) -7.35

WhiteHorse Finance has higher revenue and earnings than NeXt Innovation Corp common stock. NeXt Innovation Corp common stock is trading at a lower price-to-earnings ratio than WhiteHorse Finance, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

8.8% of WhiteHorse Finance shares are held by institutional investors. Comparatively, 33.2% of NeXt Innovation Corp common stock shares are held by institutional investors. 1.2% of WhiteHorse Finance shares are held by company insiders. Comparatively, 1.0% of NeXt Innovation Corp common stock shares are held by company 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.

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 9.8%. NeXt Innovation Corp common stock does not pay a dividend. WhiteHorse Finance pays out 105.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

WhiteHorse Finance beats NeXt Innovation Corp common stock on 10 of the 16 factors compared between the two stocks.

WhiteHorse Finance Company Profile

WhiteHorse Finance, LLC is a business development company.

NeXt Innovation Corp common stock Company Profile

GSV Capital Corp. is specializing in growth capital, B round and beyond, emerging growth, and pre-IPO investments in late stage venture-backed private companies. It makes direct (primary rounds) investments in companies and also makes secondary direct investments. The fund may also invest in select publicly-traded equity securities of companies that otherwise meet its investment criteria. It seeks to invest in the technology subsectors of social/mobile marketplaces, sustainability, cloud computing and big data, social media, mobile computing and applications, software as a service, Internet commerce, green technology and education technology. The fund invests in the form of non-controlling equity and equity-related investments, including common stock, warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio company's common equity, and convertible debt securities with a significant equity component. It will invest in companies based in United States. It generally invests in companies with a market value of over $100 million. Typically, the firm exits its position within 18 months of going public, or 12 months after any relevant lock-up has expired.

Receive News & Ratings for WhiteHorse Finance Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WhiteHorse Finance and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply