VanEck Vectors Biotech ETF (NASDAQ:BBH) and WhiteHorse Finance (NASDAQ:WHF) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Dividends

VanEck Vectors Biotech ETF pays an annual dividend of $0.47 per share and has a dividend yield of 0.3%. WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 10.2%. WhiteHorse Finance pays out 94.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation and Earnings

This table compares VanEck Vectors Biotech ETF and WhiteHorse Finance’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VanEck Vectors Biotech ETF N/A N/A N/A N/A N/A
WhiteHorse Finance $63.25 million 4.51 $57.30 million $1.50 9.25

WhiteHorse Finance has higher revenue and earnings than VanEck Vectors Biotech ETF.

Profitability

This table compares VanEck Vectors Biotech ETF and WhiteHorse Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VanEck Vectors Biotech ETF N/A N/A N/A
WhiteHorse Finance 40.72% 9.99% 5.74%

Institutional and Insider Ownership

20.5% of VanEck Vectors Biotech ETF shares are owned by institutional investors. Comparatively, 16.0% of WhiteHorse Finance shares are owned by institutional investors. 1.2% of WhiteHorse Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

VanEck Vectors Biotech ETF has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, WhiteHorse Finance has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for VanEck Vectors Biotech ETF and WhiteHorse Finance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VanEck Vectors Biotech ETF 0 0 0 0 N/A
WhiteHorse Finance 0 2 3 0 2.60

WhiteHorse Finance has a consensus target price of $14.83, suggesting a potential upside of 6.87%. Given WhiteHorse Finance’s higher possible upside, analysts clearly believe WhiteHorse Finance is more favorable than VanEck Vectors Biotech ETF.

Summary

WhiteHorse Finance beats VanEck Vectors Biotech ETF on 8 of the 11 factors compared between the two stocks.

WhiteHorse Finance Company Profile

WhiteHorse Finance, Inc is a managed, non-diversified, closed-end management investment company which operates as a direct lender targeting debt investments in privately held, lower middle market companies located in the United States. Its investment objective is to generate returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing lower middle market companies across a range of industries that typically carry a floating interest rate based on the London Interbank Offered Rate. It focuses principally on originating senior secured loans to lower middle market companies. The company was founded on December 28, 2011 and is headquartered in Miami, FL.

Receive News & Ratings for VanEck Vectors Biotech ETF Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VanEck Vectors Biotech ETF and related companies with MarketBeat.com's FREE daily email newsletter.