RWAY vs TPVG vs HRZN vs HTGC vs ARCC

For growth investors, TriplePoint Venture Growth BDC Corp.

(TPVG) is the stronger pick with 36. 6% revenue growth year-over-year, versus 12. 8% for Runway Growth Finance Corp. (RWAY). 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 Hercules Capital, Inc. (HTGC) a "Buy" — based on 31 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, Runway Growth Finance Corp. is actually cheaper at 5. 0x — 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: HTGC returned +171. 6% versus RWAY's +6. 0%. 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), Hercules Capital, Inc.

(HTGC) is the lower-risk stock at 0. 69β versus TriplePoint Venture Growth BDC Corp. 's 0. 83β — meaning TPVG is approximately 21% more volatile than HTGC relative to the S&P 500. On balance sheet safety, Runway Growth Finance Corp. (RWAY) carries a lower debt/equity ratio of 93% versus 149% for Horizon Technology Finance Corporation — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), TriplePoint Venture Growth BDC Corp.

(TPVG) is pulling ahead at 36. 6% versus 12. 8% for Runway Growth Finance Corp. (RWAY). On earnings-per-share growth, the picture is similar: Horizon Technology Finance Corporation grew EPS 756. 3% year-over-year, compared to -50. 8% for Runway Growth Finance Corp.. 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.

Hercules Capital, Inc.

(HTGC) is the more profitable company, earning 62. 1% net margin versus -6. 6% for Horizon Technology Finance Corporation — meaning it keeps 62. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TPVG leads at 77. 9% versus -4. 0% for HRZN. At the gross margin level — before operating expenses — HTGC leads at 87. 2%, 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, Runway Growth Finance Corp. (RWAY) trades at 5. 0x forward P/E versus 9. 9x for Ares Capital Corporation — 5. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TPVG: 49. 4% to $8. 95.

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, Hercules Capital, Inc.

(HTGC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 69), 8. 6% yield, +171. 6% 10Y return). Both have compounded well over 10 years (HTGC: +171. 6%, TPVG: +93. 3%), 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.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: RWAY is a small-cap deep-value stock; TPVG is a small-cap high-growth stock; HRZN is a small-cap high-growth stock; HTGC is a small-cap high-growth stock; ARCC is a mid-cap high-growth 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.