WhiteHorse Finance (NASDAQ:WHF – Get Free Report) and BlackRock MuniYield Michigan Quality Fund (NYSE:MIY – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.
Dividends
WhiteHorse Finance pays an annual dividend of $1.48 per share and has a dividend yield of 10.9%. BlackRock MuniYield Michigan Quality Fund pays an annual dividend of $0.49 per share and has a dividend yield of 4.5%. WhiteHorse Finance pays out 194.7% 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.
Insider and Institutional Ownership
12.0% of WhiteHorse Finance shares are held by institutional investors. Comparatively, 18.2% of BlackRock MuniYield Michigan Quality Fund shares are held by institutional investors. 2.3% of WhiteHorse Finance shares are held by insiders. Comparatively, 1.0% of BlackRock MuniYield Michigan Quality Fund shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| WhiteHorse Finance | 18.67% | 11.29% | 4.81% |
| BlackRock MuniYield Michigan Quality Fund | N/A | N/A | N/A |
Earnings & Valuation
This table compares WhiteHorse Finance and BlackRock MuniYield Michigan Quality Fund’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WhiteHorse Finance | $87.53 million | 3.61 | $15.68 million | $0.76 | 17.89 |
| BlackRock MuniYield Michigan Quality Fund | N/A | N/A | N/A | N/A | N/A |
WhiteHorse Finance has higher revenue and earnings than BlackRock MuniYield Michigan Quality Fund.
Analyst Ratings
This is a summary of recent recommendations and price targets for WhiteHorse Finance and BlackRock MuniYield Michigan Quality Fund, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WhiteHorse Finance | 1 | 0 | 3 | 0 | 2.50 |
| BlackRock MuniYield Michigan Quality Fund | 0 | 0 | 0 | 0 | N/A |
WhiteHorse Finance currently has a consensus price target of $14.00, suggesting a potential upside of 2.94%. Given WhiteHorse Finance’s higher possible upside, equities analysts plainly believe WhiteHorse Finance is more favorable than BlackRock MuniYield Michigan Quality Fund.
Risk & Volatility
WhiteHorse Finance has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, BlackRock MuniYield Michigan Quality Fund has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500.
Summary
WhiteHorse Finance beats BlackRock MuniYield Michigan Quality Fund on 10 of the 12 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 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 BlackRock MuniYield Michigan Quality Fund
BlackRock MuniYield Michigan Quality Fund, Inc. is a closed-ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in the fixed income markets of the United States. It primarily invests in investment grade, long-term municipal obligations exempt from federal income taxes and Michigan income taxes. BlackRock MuniYield Michigan Quality Fund, Inc. was formed on October 30, 1992 and is domiciled in the United States.
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