WhiteHorse Finance (NASDAQ:WHF – Get Free Report) and Invent Ventures (OTCMKTS:IDEA – Get Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.
Earnings & Valuation
This table compares WhiteHorse Finance and Invent Ventures”s gross revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
WhiteHorse Finance | $92.82 million | 1.67 | $10.85 million | $0.15 | 44.53 |
Invent Ventures | $790,000.00 | 3.24 | $710,000.00 | N/A | N/A |
Analyst Ratings
This is a breakdown of current ratings for WhiteHorse Finance and Invent Ventures, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
WhiteHorse Finance | 3 | 4 | 0 | 0 | 1.57 |
Invent Ventures | 0 | 0 | 0 | 0 | 0.00 |
WhiteHorse Finance currently has a consensus price target of $9.17, indicating a potential upside of 37.23%. Given WhiteHorse Finance’s stronger consensus rating and higher probable upside, equities analysts clearly believe WhiteHorse Finance is more favorable than Invent Ventures.
Profitability
This table compares WhiteHorse Finance and Invent Ventures’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
WhiteHorse Finance | 4.36% | 10.72% | 4.51% |
Invent Ventures | 91.12% | N/A | N/A |
Risk & Volatility
WhiteHorse Finance has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, Invent Ventures has a beta of -52.44, meaning that its stock price is 5,344% less volatile than the S&P 500.
Institutional & Insider Ownership
13.2% of WhiteHorse Finance shares are owned by institutional investors. 2.5% of WhiteHorse Finance shares are owned by insiders. Comparatively, 19.4% of Invent Ventures shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Summary
WhiteHorse Finance beats Invent Ventures on 8 of the 11 factors compared between the two stocks.
About WhiteHorse Finance
WhiteHorse Finance, Inc. is business development company, non-diversified, closed end management company specializing in originating senior secured loans, lower middle market, growth capital industries. It invests in broadline retail, office services and supplies, building products, health care services, health care supplies, research and consulting services, application software, home furnishings, specialized consumer services, data processing and outsourced services, leisure facilities, cable, and satellite. It prefers to invest in United States. It typically invests between $5 million to $25 million in companies having enterprise value of between $50 million and $350 million.
About Invent Ventures
Invent Ventures, Inc., formerly known as Los Angeles Syndicate of Technology, Inc., is venture capital firm specializing in incubation, seed, start ups, growth capital, and early stage investments. The firm prefers to invest in technology companies including web-based software, digital media, mobile applications, social media, consumer internet, online advertising and healthcare technology . It prefers to invest in the Los Angeles area of United States. The firm seeks to invest up to $0.25 million. Invent Ventures, Inc. was founded on August 18, 2005 and is based in Santa Monica, California.
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