Analyzing WhiteHorse Finance (NASDAQ:WHF) & Adams Diversified Equity Fund (NYSE:ADX)

WhiteHorse Finance (NASDAQ:WHF) and Adams Diversified Equity Fund (NYSE:ADX) are both finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

WhiteHorse Finance has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Adams Diversified Equity Fund has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500.

Valuation & Earnings

This table compares WhiteHorse Finance and Adams Diversified Equity Fund”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WhiteHorse Finance	$17.10 million	13.47	$20.41 million	$0.47	21.09
Adams Diversified Equity Fund	$564.12 million	3.96	N/A	N/A	N/A

WhiteHorse Finance has higher earnings, but lower revenue than Adams Diversified Equity Fund.

Dividends

WhiteHorse Finance pays an annual dividend of $1.54 per share and has a dividend yield of 15.5%. Adams Diversified Equity Fund pays an annual dividend of $2.92 per share and has a dividend yield of 15.4%. WhiteHorse Finance pays out 327.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares WhiteHorse Finance and Adams Diversified Equity Fund’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WhiteHorse Finance	10.65%	12.86%	5.59%
Adams Diversified Equity Fund	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for WhiteHorse Finance and Adams Diversified Equity Fund, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WhiteHorse Finance	1	2	0	0	1.67
Adams Diversified Equity Fund	0	0	0	0	0.00

WhiteHorse Finance presently has a consensus target price of $10.50, indicating a potential upside of 5.95%. Given WhiteHorse Finance’s stronger consensus rating and higher possible upside, equities research analysts clearly believe WhiteHorse Finance is more favorable than Adams Diversified Equity Fund.

Insider and Institutional Ownership

13.2% of WhiteHorse Finance shares are owned by institutional investors. Comparatively, 28.4% of Adams Diversified Equity Fund shares are owned by institutional investors. 2.3% of WhiteHorse Finance shares are owned by insiders. Comparatively, 0.1% of Adams Diversified Equity Fund shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

WhiteHorse Finance beats Adams Diversified Equity Fund on 9 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 invests in broadline retail, office services and supplies, building products, health care services, health care supplies, research and consulting services, application software, home furnishings, specialized consumer services, data processing and outsourced services, leisure facilities, cable, and satellite. 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 Adams Diversified Equity Fund

Adams Diversified Equity Fund, Inc. is a publicly owned investment manager. It primarily provides its services to investment companies. The firm is a large advisory firm The firm is actively engaged in businesses, including commodity pool operator or commodity trading advisor. The firm launches equity. NA The firm employs combination of fundamental, technical, quantitative modelling, and macro-economic analysis to make its investment. The firm conduct external research to make its investment. The firm was formerly known as The Adams Express Company. Adams Diversified Equity Fund, Inc. was founded in 1929 and is based in Baltimore, Maryland.