Invesco California Value Municipal Income Trust (VCV) and WhiteHorse Finance (WHF) Head to Head Analysis

Invesco California Value Municipal Income Trust (NYSE: VCV) and WhiteHorse Finance (NASDAQ:WHF) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, profitability, risk, analyst recommendations, dividends, earnings and institutional ownership.

Profitability

This table compares Invesco California Value Municipal Income Trust and WhiteHorse Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Invesco California Value Municipal Income Trust N/A N/A N/A
WhiteHorse Finance 62.57% 10.57% 5.99%

Valuation and Earnings

This table compares Invesco California Value Municipal Income Trust and WhiteHorse Finance’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Invesco California Value Municipal Income Trust N/A N/A N/A N/A N/A
WhiteHorse Finance N/A N/A N/A $1.88 7.60

Institutional and Insider Ownership

11.6% of Invesco California Value Municipal Income Trust shares are held by institutional investors. Comparatively, 11.1% of WhiteHorse Finance shares are held by institutional investors. 1.0% of Invesco California Value Municipal Income Trust shares are held by company insiders. Comparatively, 1.4% 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 will outperform the market over the long term.

Volatility and Risk

Invesco California Value Municipal Income Trust has a beta of -0.1, meaning that its stock price is 110% less volatile than the S&P 500. Comparatively, WhiteHorse Finance has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Dividends

Invesco California Value Municipal Income Trust pays an annual dividend of $0.64 per share and has a dividend yield of 4.9%. WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 9.9%. WhiteHorse Finance pays out 75.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Invesco California Value Municipal Income Trust and WhiteHorse Finance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Invesco California Value Municipal Income Trust 0 0 0 0 N/A
WhiteHorse Finance 0 0 2 0 3.00

WhiteHorse Finance has a consensus target price of $13.50, indicating a potential downside of 5.53%. Given WhiteHorse Finance’s higher possible upside, analysts clearly believe WhiteHorse Finance is more favorable than Invesco California Value Municipal Income Trust.

Summary

WhiteHorse Finance beats Invesco California Value Municipal Income Trust on 8 of the 10 factors compared between the two stocks.

Invesco California Value Municipal Income Trust Company Profile

Invesco Van Kampen California Value Municipal Income Trust (the Trust), formerly Invesco California Value Municipal Income Trust, is a diversified, closed-end management investment trust. The Trust’s investment objective is to seek to provide common shareholders with a high level of current income exempt from federal and California income taxes, consistent with preservation of capital. The Trust will invest substantially all of its assets in California municipal securities rated investment grade at the time of investment. The Trust seeks to achieve its investment objective by investing primarily in California municipal securities that are rated investment grade at the time of investment. Municipal securities include municipal bonds, municipal notes, municipal commercial paper and lease obligations. Invesco Advisers, Inc. serves as its investment advisor.

WhiteHorse Finance Company Profile

WhiteHorse Finance, Inc. is a non-diversified, closed-end management investment company. The Company is a direct lender targeting debt investments in privately held, small-cap companies located in the United States. The Company’s investment objective is to generate attractive risk-adjusted returns primarily by originating and investing in senior secured loans, including first lien and second lien facilities, to performing small-cap companies across a range of industries that typically carry a floating interest rate based on the London Interbank Offered Rate (LIBOR) and have a term of 3 to 6 years. The Company may also make investments at other levels of a company’s capital structure, including mezzanine loans or equity interests. The Company also may receive warrants to purchase common stock in connection with its debt investments. Its investment advisor is H.I.G. WhiteHorse Advisers, LLC.

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