Critical Contrast: Eaton Vance Tax Managed Buy Write Opport (ETV) & WhiteHorse Finance (WHF)

Eaton Vance Tax Managed Buy Write Opport (NYSE: ETV) and WhiteHorse Finance (NASDAQ:WHF) are both financials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Dividends

WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 10.2%. Eaton Vance Tax Managed Buy Write Opport does not pay a dividend. WhiteHorse Finance pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of recent ratings and target prices for Eaton Vance Tax Managed Buy Write Opport and WhiteHorse Finance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Vance Tax Managed Buy Write Opport 0 1 0 0 2.00
WhiteHorse Finance 0 0 2 0 3.00

Eaton Vance Tax Managed Buy Write Opport presently has a consensus price target of $40.00, indicating a potential upside of 161.78%. WhiteHorse Finance has a consensus price target of $13.50, indicating a potential downside of 3.50%. Given Eaton Vance Tax Managed Buy Write Opport’s higher probable upside, analysts clearly believe Eaton Vance Tax Managed Buy Write Opport is more favorable than WhiteHorse Finance.

Valuation & Earnings

This table compares Eaton Vance Tax Managed Buy Write Opport and WhiteHorse Finance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A N/A N/A
WhiteHorse Finance N/A N/A N/A $1.88 7.44

Profitability

This table compares Eaton Vance Tax Managed Buy Write Opport and WhiteHorse Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Vance Tax Managed Buy Write Opport N/A N/A N/A
WhiteHorse Finance 62.57% 10.57% 5.99%

Institutional and Insider Ownership

11.6% of WhiteHorse Finance shares are held by institutional investors. 1.4% of WhiteHorse Finance shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

WhiteHorse Finance beats Eaton Vance Tax Managed Buy Write Opport on 8 of the 10 factors compared between the two stocks.

Eaton Vance Tax Managed Buy Write Opport Company Profile

Eaton Vance Tax-Managed Buy-Write Opportunities Fund is a United States-based diversified, closed-end management investment company. The Fund’s investment objective is to provide income and gains, with a secondary objective of capital appreciation. It invests in a portfolio of common stocks and writes call options on one or more United States indices on a substantial portion of the value of its common stock portfolio to generate earnings from the option. It evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders in connection with their investment in the Fund. Its portfolio of investments include hotels, restaurants and leisure; life sciences tools and services; software; technology hardware, storage and peripherals; technology hardware, storage and peripherals, and personal products, among others. Its investment advisor is Eaton Vance Management and its sub-advisor is Parametric Portfolio Associates LLC.

WhiteHorse Finance Company Profile

WhiteHorse Finance, Inc. is a non-diversified, closed-end management investment company. The Company is a direct lender targeting debt investments in privately held, small-cap companies located in the United States. The Company’s investment objective is to generate attractive risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing small-cap companies across a range of industries that typically carry a floating interest rate based on the London Interbank Offered Rate (LIBOR) and have a term of 3 to 6 years. The Company may also make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests. The Company also may receive warrants to purchase common stock in connection with its debt investments. Its investment advisor is H.I.G. WhiteHorse Advisers, LLC.

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