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HEQ vs HYI

HEQ
John Hancock Diversified Income Fund
NEUTRAL
Price
$11.60
Market Cap
$140.3M
Sector
Financial Services
AI Confidence
80%
HYI
Western Asset High Yield Opportunity Fund Inc.
BEARISH
Price
$10.86
Market Cap
$139.2M
Sector
Financial Services
AI Confidence
90%

Valuation

P/E Ratio
HEQ
7.44
HYI
14.48
Forward P/E
HEQ
--
HYI
--
P/B Ratio
HEQ
--
HYI
--
P/S Ratio
HEQ
--
HYI
--
EV/EBITDA
HEQ
--
HYI
--

Profitability

Gross Margin
HEQ
0.0%
HYI
0.0%
Operating Margin
HEQ
0.0%
HYI
0.0%
Profit Margin
HEQ
0.0%
HYI
0.0%
ROE
HEQ
--
HYI
--
ROA
HEQ
--
HYI
--

Growth

Revenue Growth
HEQ
--
HYI
--
Earnings Growth
HEQ
--
HYI
--

Financial Health

Debt/Equity
HEQ
--
HYI
--
Current Ratio
HEQ
--
HYI
--
Quick Ratio
HEQ
--
HYI
--

Dividends

Dividend Yield
HEQ
8.62%
HYI
10.5%
Payout Ratio
HEQ
64.1%
HYI
152.0%

AI Verdict

HEQ NEUTRAL

The deterministic health profile is severely compromised, highlighted by a Piotroski F-Score of 1/9, indicating significant fundamental weakness. While the fund trades at a low P/E of 7.44, it is currently priced at a premium to its growth-based intrinsic value of $10.92. These red flags are partially offset by a strong dividend yield of 8.62% and impressive short-to-medium term price appreciation. Overall, the asset presents as a high-yield income vehicle with poor underlying financial health metrics.

Strengths
Attractive dividend yield of 8.62%
Sustainable payout ratio of 64.10%
Strong 1-year price performance (+25.7%)
Risks
Critical Piotroski F-Score (1/9) indicating poor financial health
Current price ($11.60) exceeds intrinsic value ($10.92)
Bearish technical trend score (10/100)
HYI BEARISH

The deterministic health profile is critical, highlighted by a Piotroski F-Score of 1/9, indicating severe financial weakness. The fund is trading at a significant premium to its growth-based intrinsic value of $5.25, with a current price of $10.86. A payout ratio of 152% suggests that the 10.50% dividend yield is unsustainable and likely funded by return of capital or leverage. Combined with a 0/100 technical trend, the asset presents as a high-risk value trap.

Strengths
High current dividend yield of 10.50%
Positive 3-year price appreciation (+25.7%)
P/E ratio (14.48) is significantly lower than the sector average (36.39)
Risks
Extremely weak financial health (Piotroski F-Score 1/9)
Unsustainable dividend payout ratio of 152%
Current price is more than double the estimated intrinsic value ($10.86 vs $5.25)

Compare Another Pair

HEQ vs HYI: Head-to-Head Comparison

This page compares John Hancock Diversified Income Fund (HEQ) and Western Asset High Yield Opportunity Fund Inc. (HYI) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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