Critical Contrast: WhiteHorse Finance (NASDAQ:WHF) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (NASDAQ:QQQX)

WhiteHorse Finance (NASDAQ:WHFGet Free Report) and Nuveen Nasdaq 100 Dynamic Overwrite Fund (NASDAQ:QQQXGet Free Report) are both small-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, valuation, earnings, profitability, analyst recommendations, dividends and institutional ownership.

Insider and Institutional Ownership

12.3% of WhiteHorse Finance shares are held by institutional investors. Comparatively, 20.7% of Nuveen Nasdaq 100 Dynamic Overwrite Fund shares are held by institutional investors. 2.3% of WhiteHorse Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares WhiteHorse Finance and Nuveen Nasdaq 100 Dynamic Overwrite Fund’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WhiteHorse Finance 15.23% 13.19% 5.58%
Nuveen Nasdaq 100 Dynamic Overwrite Fund N/A N/A N/A

Earnings & Valuation

This table compares WhiteHorse Finance and Nuveen Nasdaq 100 Dynamic Overwrite Fund’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WhiteHorse Finance $21.40 million 13.60 $15.68 million $0.68 18.41
Nuveen Nasdaq 100 Dynamic Overwrite Fund N/A N/A N/A N/A N/A

WhiteHorse Finance has higher revenue and earnings than Nuveen Nasdaq 100 Dynamic Overwrite Fund.

Dividends

WhiteHorse Finance pays an annual dividend of $1.54 per share and has a dividend yield of 12.3%. Nuveen Nasdaq 100 Dynamic Overwrite Fund pays an annual dividend of $1.68 per share and has a dividend yield of 7.2%. WhiteHorse Finance pays out 226.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. WhiteHorse Finance has raised its dividend for 1 consecutive years. WhiteHorse Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility and Risk

WhiteHorse Finance has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Nuveen Nasdaq 100 Dynamic Overwrite Fund has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for WhiteHorse Finance and Nuveen Nasdaq 100 Dynamic Overwrite Fund, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WhiteHorse Finance 0 2 2 0 2.50
Nuveen Nasdaq 100 Dynamic Overwrite Fund 0 0 0 0 N/A

WhiteHorse Finance presently has a consensus target price of $13.44, indicating a potential upside of 7.33%. Given WhiteHorse Finance’s higher possible upside, analysts clearly believe WhiteHorse Finance is more favorable than Nuveen Nasdaq 100 Dynamic Overwrite Fund.

Summary

WhiteHorse Finance beats Nuveen Nasdaq 100 Dynamic Overwrite Fund on 10 of the 12 factors compared between the two stocks.

About WhiteHorse Finance

(Get Free Report)

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 Nuveen Nasdaq 100 Dynamic Overwrite Fund

(Get Free Report)

Nuveen Nasdaq 100 Dynamic Overwrite Fund is a closed-ended equity indexed mutual fund launched by Nuveen Investments, Inc. The fund is co-managed by Nuveen Asset Management, LLC and Nuveen Fund Advisors LLC. It invests in the public equity markets of the United States. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in the stocks of large-cap companies. The fund also invests through index call options. It seeks to replicate the performance of its portfolio against the NASDAQ 100 Index. The fund was previously known as NASDAQ Premium Income & Growth Fund Inc. Nuveen Nasdaq 100 Dynamic Overwrite Fund was formed on January 30, 2007 and is domiciled in the United States.

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