WhiteHorse Finance (NASDAQ:WHF) vs. Delaware Investments Minnesota Municipal Income Fund II (NYSE:VMM) Head to Head Analysis

Delaware Investments Minnesota Municipal Income Fund II (NYSE:VMM) and WhiteHorse Finance (NASDAQ:WHF) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Dividends

Delaware Investments Minnesota Municipal Income Fund II pays an annual dividend of $0.41 per share and has a dividend yield of 3.0%. WhiteHorse Finance pays an annual dividend of $1.42 per share and has a dividend yield of 9.3%. WhiteHorse Finance pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk and Volatility

Delaware Investments Minnesota Municipal Income Fund II has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, WhiteHorse Finance has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Profitability

This table compares Delaware Investments Minnesota Municipal Income Fund II and WhiteHorse Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delaware Investments Minnesota Municipal Income Fund II N/A N/A N/A
WhiteHorse Finance 49.83% 9.24% 4.16%

Earnings & Valuation

This table compares Delaware Investments Minnesota Municipal Income Fund II and WhiteHorse Finance’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Delaware Investments Minnesota Municipal Income Fund II N/A N/A N/A N/A N/A
WhiteHorse Finance $61.70 million 5.72 $31.68 million $1.71 8.92

WhiteHorse Finance has higher revenue and earnings than Delaware Investments Minnesota Municipal Income Fund II.

Analyst Ratings

This is a breakdown of recent ratings for Delaware Investments Minnesota Municipal Income Fund II and WhiteHorse Finance, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delaware Investments Minnesota Municipal Income Fund II 0 0 0 0 N/A
WhiteHorse Finance 0 2 1 0 2.33

WhiteHorse Finance has a consensus target price of $16.00, indicating a potential upside of 4.92%. Given WhiteHorse Finance’s higher probable upside, analysts plainly believe WhiteHorse Finance is more favorable than Delaware Investments Minnesota Municipal Income Fund II.

Insider and Institutional Ownership

27.4% of Delaware Investments Minnesota Municipal Income Fund II shares are held by institutional investors. Comparatively, 12.4% of WhiteHorse Finance shares are held by institutional investors. 2.0% of WhiteHorse Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

WhiteHorse Finance beats Delaware Investments Minnesota Municipal Income Fund II on 9 of the 11 factors compared between the two stocks.

About Delaware Investments Minnesota Municipal Income Fund II

Delaware Investments Minnesota Municipal Income Fund II, Inc. is a closed ended fixed income mutual fund launched by Delaware Management Holdings, Inc. The fund is managed by Delaware Management Business Trust. It invests in fixed income markets of the United States. The fund primarily invests in investment grade municipal bonds, which include airport revenue bonds, city general obligation bonds, continuing care and retirement revenue bonds, corporate backed revenue bonds, escrowed to maturity bonds, higher education revenue bonds, hospital revenue bonds, multifamily housing revenue bonds, municipal lease revenue bonds, parking revenue bonds, political subdivision general obligation bonds, pre-refunded bonds, public power revenue bonds, school district general obligation bonds, single family housing revenue bonds, state general obligation bonds, tax increment and special assessment bonds, territorial general obligation bonds, and territorial revenue bonds. It benchmarks the performance of its portfolio against the Barclays Municipal Bond Index. The fund was previously known as Voyageur Minnesota Municipal Income Fund II, Inc. Delaware Investments Minnesota Municipal Income Fund II, Inc. was formed in 1992 and is domiciled in the United States.

About WhiteHorse Finance

WhiteHorse Finance, Inc. is an externally managed, non-diversified, closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Our stock is publicly traded on the NASDAQ exchange under the ticker symbol ”WHF”. We have senior notes listed on the NASDAQ exchange under the ticker symbol “WHFBL“.

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