Brookfield Asset Management (NYSE:BAM – Get Free Report) and Horizon Technology Finance (NASDAQ:HRZN – Get Free Report) are both finance companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Dividends
Brookfield Asset Management pays an annual dividend of $2.01 per share and has a dividend yield of 4.5%. Horizon Technology Finance pays an annual dividend of $0.72 per share and has a dividend yield of 16.0%. Brookfield Asset Management pays out 116.9% 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 pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brookfield Asset Management has increased its dividend for 2 consecutive years.
Risk & Volatility
Brookfield Asset Management has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500. Comparatively, Horizon Technology Finance has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brookfield Asset Management | $4.82 billion | 15.18 | $2.48 billion | $1.72 | 25.96 |
| Horizon Technology Finance | $96.02 million | 3.15 | -$2.66 million | $0.36 | 12.53 |
Brookfield Asset Management has higher revenue and earnings than Horizon Technology Finance. Horizon Technology Finance is trading at a lower price-to-earnings ratio than Brookfield Asset Management, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Brookfield Asset Management and Horizon Technology Finance, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brookfield Asset Management | 1 | 7 | 7 | 1 | 2.50 |
| Horizon Technology Finance | 1 | 5 | 1 | 0 | 2.00 |
Brookfield Asset Management currently has a consensus target price of $57.22, indicating a potential upside of 28.14%. Horizon Technology Finance has a consensus target price of $5.00, indicating a potential upside of 10.86%. Given Brookfield Asset Management’s stronger consensus rating and higher probable upside, equities analysts clearly believe Brookfield Asset Management is more favorable than Horizon Technology Finance.
Profitability
This table compares Brookfield Asset Management and Horizon Technology Finance’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brookfield Asset Management | 48.89% | 31.50% | 15.75% |
| Horizon Technology Finance | 5.27% | 11.15% | 4.84% |
Institutional & Insider Ownership
68.4% of Brookfield Asset Management shares are owned by institutional investors. Comparatively, 4.9% of Horizon Technology Finance shares are owned by institutional investors. 11.0% of Brookfield Asset Management shares are owned by insiders. Comparatively, 0.3% of Horizon Technology Finance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Summary
Brookfield Asset Management beats Horizon Technology Finance on 17 of the 18 factors compared between the two stocks.
About Brookfield Asset Management
Brookfield Asset Management Ltd. is a real estate investment firm specializing in alternative asset management services. Its renewable power and transition business includes the operates in the hydroelectric, wind, solar, distributed generation, and sustainable solution sector. The company's infrastructure business engages in the utilities, transport, midstream, and data infrastructure sectors. In addition, its private equity business offers industrial, infrastructure, and business services sectors; and real estate business, which includes housing, logistics, hospitality, science and innovation, office, and retail sectors. Further, it provides credit business; and insurance solution in the reinsurance, annuities, operating platform, and investment solutions sectors. Brookfield Asset Management Ltd. was incorporated in 2022 and is headquartered in Toronto, Canada.
About Horizon Technology Finance
Horizon Technology Finance Corporation is a business development company specializing in lending and and investing in development-stage investments. It focuses on making secured debt and venture lending investments to venture capital backed companies in the technology, life science, healthcare information and services, cleantech and sustainability industries. It seeks to invest in companies in the United States.
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