Dividend and Income Fund (OTCMKTS:DNIF) & Horizon Technology Finance (NASDAQ:HRZN) Head to Head Review

Dividend and Income Fund (OTCMKTS:DNIF – Get Rating) and Horizon Technology Finance (NASDAQ:HRZN – Get Rating) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, earnings, analyst recommendations, profitability and risk.

Earnings & Valuation

This table compares Dividend and Income Fund and Horizon Technology Finance’s revenue, earnings per share and valuation.

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Horizon Technology Finance has higher revenue and earnings than Dividend and Income Fund.

Dividends

Dividend and Income Fund pays an annual dividend of $1.00 per share and has a dividend yield of 8.9%. Horizon Technology Finance pays an annual dividend of $1.32 per share and has a dividend yield of 10.9%. Horizon Technology Finance pays out 155.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Horizon Technology Finance has increased its dividend for 1 consecutive years. Horizon Technology Finance is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

16.0% of Dividend and Income Fund shares are held by institutional investors. Comparatively, 9.8% of Horizon Technology Finance shares are held by institutional investors. 1.0% of Dividend and Income Fund shares are held by insiders. Comparatively, 1.5% of Horizon Technology Finance 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.

Profitability

This table compares Dividend and Income Fund and Horizon Technology Finance’s net margins, return on equity and return on assets.

Risk & Volatility

Dividend and Income Fund has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Horizon Technology Finance has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings for Dividend and Income Fund and Horizon Technology Finance, as reported by MarketBeat.com.

Horizon Technology Finance has a consensus target price of $11.20, suggesting a potential downside of 7.28%. Given Horizon Technology Finance’s higher probable upside, analysts clearly believe Horizon Technology Finance is more favorable than Dividend and Income Fund.

Summary

Horizon Technology Finance beats Dividend and Income Fund on 9 of the 12 factors compared between the two stocks.

About Dividend and Income Fund

(Get Rating)

Dividend and Income Fund is a closed-ended equity mutual fund launched and managed by Bexil Advisers LLC. It invests in public equity markets across the globe. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in dividend paying stocks of companies across all capitalizations. The fund also invests through closed end funds, open end funds, business development companies, exchange traded funds, and real estate investment trusts. It employs fundamental analysis with a focus on such factors as yield, financial strength, profitability, growth potential, and risks to create its portfolio. The fund benchmarks the performance of its portfolio against the Standard & Poor's 500 Composite Index. It was formerly known as Chartwell Dividend & Income Fund Inc. Dividend and Income Fund was formed on June 9, 1998 and is domiciled in the United States.

About Horizon Technology Finance

(Get Rating)

Horizon Technology Finance Corp. operates as a specialty finance company, which engages in the provision of capital in the form of secured loans to venture capital backed companies. It is also involved in lending and investing in portfolio companies in technology, life science, healthcare information and services and cleantech industries. The company was founded by John C. Bombara, Daniel S. Devorsetz, Robert D. Pomeroy and Gerald A. Michaud on March 16, 2010 and is headquartered in Farmington, CT.

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