HRZN vs SUNS vs TPVG vs ARCC vs PSEC

For growth investors, Sunrise Realty Trust, Inc.

(SUNS) is the stronger pick with 148. 1% revenue growth year-over-year, versus -159. 2% for Prospect Capital Corporation (PSEC). Horizon Technology Finance Corporation (HRZN) offers the better valuation at 4. 3x trailing P/E (6. 1x forward), making it the more compelling value choice. Analysts rate Ares Capital Corporation (ARCC) a "Buy" — based on 32 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Horizon Technology Finance Corporation (HRZN) is the cheapest at 4.

3x versus Ares Capital Corporation at 10. 2x. On forward P/E, Prospect Capital Corporation is actually cheaper at 5. 9x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Horizon Technology Finance Corporation wins at 0. 26x versus TriplePoint Venture Growth BDC Corp. 's 6. 41x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Ares Capital Corporation (ARCC) delivered a total return of +47.

0%, compared to -32. 8% for Horizon Technology Finance Corporation (HRZN). Over 10 years, the gap is even starker: ARCC returned +139. 2% versus SUNS's -10. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Horizon Technology Finance Corporation (HRZN) is the lower-risk stock at 0.

70β versus Prospect Capital Corporation's 0. 93β — meaning PSEC is approximately 32% more volatile than HRZN relative to the S&P 500. On balance sheet safety, Sunrise Realty Trust, Inc. (SUNS) carries a lower debt/equity ratio of 67% versus 149% for Horizon Technology Finance Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sunrise Realty Trust, Inc.

(SUNS) is pulling ahead at 148. 1% versus -159. 2% for Prospect Capital Corporation (PSEC). On earnings-per-share growth, the picture is similar: Horizon Technology Finance Corporation grew EPS 756. 3% year-over-year, compared to -475. 0% for Prospect Capital Corporation. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Prospect Capital Corporation (PSEC) is the more profitable company, earning 169.

8% net margin versus -6. 6% for Horizon Technology Finance Corporation — meaning it keeps 169. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PSEC leads at 169. 8% versus -4. 0% for HRZN. At the gross margin level — before operating expenses — PSEC leads at 147. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Horizon Technology Finance Corporation (HRZN) is the more undervalued stock at a PEG of 0. 26x versus TriplePoint Venture Growth BDC Corp. 's 6. 41x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Prospect Capital Corporation (PSEC) trades at 5. 9x forward P/E versus 9. 9x for Ares Capital Corporation — 4. 1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SUNS: 97. 8% to $15. 25.

All stocks in this comparison pay dividends.

Horizon Technology Finance Corporation (HRZN) offers the highest yield at 27. 8%, versus 2. 0% for Ares Capital Corporation (ARCC).

For long-horizon retirement investors, Horizon Technology Finance Corporation (HRZN) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

70), 27. 8% yield). Both have compounded well over 10 years (HRZN: +52. 9%, PSEC: +38. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (HRZN (Financial Services) and SUNS (Real Estate) and TPVG (Financial Services) and ARCC (Financial Services) and PSEC (Financial Services)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: HRZN is a small-cap high-growth stock; SUNS is a small-cap high-growth stock; TPVG is a small-cap high-growth stock; ARCC is a mid-cap high-growth stock; PSEC is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.