Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) and Brookfield Asset Management (NYSE:BAM – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, dividends, valuation, earnings, analyst recommendations, risk and institutional ownership.
Dividends
Horizon Technology Finance pays an annual dividend of $0.72 per share and has a dividend yield of 15.7%. Brookfield Asset Management pays an annual dividend of $2.01 per share and has a dividend yield of 4.4%. Horizon Technology Finance pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management pays out 116.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management has increased its dividend for 2 consecutive years.
Institutional & Insider Ownership
4.9% of Horizon Technology Finance shares are held by institutional investors. Comparatively, 68.4% of Brookfield Asset Management shares are held by institutional investors. 0.3% of Horizon Technology Finance shares are held by insiders. Comparatively, 11.0% of Brookfield Asset Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Horizon Technology Finance | $20.51 million | 15.00 | -$2.66 million | $0.36 | 12.75 |
| Brookfield Asset Management | $4.82 billion | 15.62 | $2.48 billion | $1.72 | 26.71 |
Brookfield Asset Management has higher revenue and earnings than Horizon Technology Finance. Horizon Technology Finance is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Horizon Technology Finance and Brookfield Asset Management, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Horizon Technology Finance | 1 | 5 | 1 | 0 | 2.00 |
| Brookfield Asset Management | 1 | 7 | 7 | 1 | 2.50 |
Horizon Technology Finance presently has a consensus target price of $5.00, indicating a potential upside of 8.93%. Brookfield Asset Management has a consensus target price of $57.59, indicating a potential upside of 25.38%. Given Brookfield Asset Management’s stronger consensus rating and higher possible upside, analysts plainly believe Brookfield Asset Management is more favorable than Horizon Technology Finance.
Profitability
This table compares Horizon Technology Finance and Brookfield Asset Management’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Horizon Technology Finance | 5.27% | 11.15% | 4.84% |
| Brookfield Asset Management | 48.89% | 31.50% | 15.75% |
Volatility and Risk
Horizon Technology Finance has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Brookfield Asset Management has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.
Summary
Brookfield Asset Management beats Horizon Technology Finance on 17 of the 18 factors compared between the two stocks.
About Horizon Technology Finance
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, cleantech and sustainability industries. It seeks to invest in companies in the United States.
About Brookfield Asset Management
Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.
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