The Gabelli Convertible and Income Securities Fund (NYSE:GCV) and WhiteHorse Finance (NASDAQ:WHF) Critical Survey

Gabelli Convertible and Income Securities Fund (NYSE:GCV – Get Rating) and WhiteHorse Finance (NASDAQ:WHF – Get Rating) are both small-cap financial companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Rating & Result

This table compares the gross earnings, earnings per share (EPS) and valuation of The Gabelli Convertible and Income Securities Fund and WhiteHorse Finance.

WhiteHorse Finance has higher revenue and income than The Gabelli Convertible and Income Securities Fund.

profitability

This table compares the net margins, return on equity and return on total assets for The Gabelli Convertible and Income Securities Fund and WhiteHorse Finance.

Volatility & Risk

The Gabelli Convertible and Income Securities Fund has a beta of 0.91, meaning its stock price is 9% less volatile than the S&P 500. In comparison, WhiteHorse Finance has a beta of 1.29, meaning its stock price 29% more volatile than the S&P500.

Analyst Ratings

This is a summary of the most recent recommendations for The Gabelli Convertible and Income Securities Fund and WhiteHorse Finance, as provided by MarketBeat.

WhiteHorse Finance has a consensus price target of $13.60, suggesting a potential upside of 8.11%. Given WhiteHorse Finance’s more likely upside potential, analysts clearly believe that WhiteHorse Finance is cheaper than The Gabelli Convertible and Income Securities Fund.

dividends

The Gabelli Convertible and Income Securities Fund pays an annual dividend of $0.48 per share and has a dividend yield of 9.4%. WhiteHorse Finance pays an annual dividend of $1.42 per share and has an 11.3% dividend yield. WhiteHorse Finance pays out 161.4% of its earnings in the form of a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future.

Institutional and Insider Ownership

12.5% ​​of WhiteHorse Finance shares are held by institutional investors. Company insiders hold 0.8% of shares in The Gabelli Convertible and Income Securities Fund. By comparison, 1.8% of WhiteHorse Finance’s shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments, and large wealth managers believe a company is poised for long-term growth.

summary

WhiteHorse Finance beats The Gabelli Convertible and Income Securities Fund on 10 of the 11 factors comparing the two stocks.

About the Gabelli Convertible and Income Securities Fund

(get rating)

Gabelli Convertible and Income Securities Fund Inc. is a closed-end, balanced investment fund launched by GAMCO Investors, Inc. The Fund is managed by Gabelli Funds, LLC. It invests in public equity and bond markets. The Fund seeks to invest in stocks of companies operating in diversified sectors. It invests primarily in convertible securities and other debt and equity securities. The Fund compares its portfolio’s performance to the Standard & Poor’s 500 Index, the Barclays Government/Credit Bond Index and the Lipper Convertible Securities Fund average. It was formerly known as Gabelli Convertible Securities Fund Inc. Gabelli Convertible and Income Securities Fund Inc. was incorporated on December 19, 1988 and is domiciled in the United States.

About WhiteHorse Finance

(get rating)

WhiteHorse Finance, Inc. is a business development company, non-diversified, closed-end management company focused on originating senior secured lending, lower middle market and growth capital industries. It prefers to invest in the United States. It typically invests between $5 million and $25 million in companies with enterprise values ​​ranging from $50 million to $350 million.

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