Head-To-Head Comparison: BlackRock MuniYield Quality Fund (NYSE:MQY) versus WhiteHorse Finance (NASDAQ:WHF)

BlackRock MuniYield Quality Fund (NYSE:MQY) and WhiteHorse Finance (NASDAQ:WHF) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares BlackRock MuniYield Quality Fund and WhiteHorse Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BlackRock MuniYield Quality Fund	N/A	N/A	N/A
WhiteHorse Finance	10.65%	12.86%	5.59%

Institutional & Insider Ownership

25.5% of BlackRock MuniYield Quality Fund shares are held by institutional investors. Comparatively, 13.2% of WhiteHorse Finance shares are held by institutional investors. 1.0% of BlackRock MuniYield Quality Fund shares are held by insiders. Comparatively, 2.3% of WhiteHorse Finance shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for BlackRock MuniYield Quality Fund and WhiteHorse Finance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlackRock MuniYield Quality Fund	0	0	0	0	0.00
WhiteHorse Finance	1	2	0	0	1.67

WhiteHorse Finance has a consensus target price of $10.75, suggesting a potential upside of 0.56%. Given WhiteHorse Finance’s stronger consensus rating and higher possible upside, analysts clearly believe WhiteHorse Finance is more favorable than BlackRock MuniYield Quality Fund.

Dividends

BlackRock MuniYield Quality Fund pays an annual dividend of $0.70 per share and has a dividend yield of 5.9%. WhiteHorse Finance pays an annual dividend of $1.54 per share and has a dividend yield of 14.4%. WhiteHorse Finance pays out 342.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares BlackRock MuniYield Quality Fund 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
BlackRock MuniYield Quality Fund	N/A	N/A	N/A	N/A	N/A
WhiteHorse Finance	$103.26 million	2.41	$20.41 million	$0.45	23.76

WhiteHorse Finance has higher revenue and earnings than BlackRock MuniYield Quality Fund.

Volatility & Risk

BlackRock MuniYield Quality Fund has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500. Comparatively, WhiteHorse Finance has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500.

Summary

WhiteHorse Finance beats BlackRock MuniYield Quality Fund on 9 of the 11 factors compared between the two stocks.

About BlackRock MuniYield Quality Fund

BlackRock MuniYield Quality Fund, Inc. is a close ended fixed income mutual fund launched by BlackRock, Inc. It is managed by BlackRock Advisors, LLC. The fund invests in fixed income markets. It invests in long-term municipal obligations the interest on which is exempt from federal income taxes. The fund also invests in short-term securities. BlackRock MuniYield Quality Fund, Inc. was formed on July 21, 1992 and is domiciled in United States.

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.