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HFRO vs MA

HFRO
Highland Funds I - Highland Opportunities and Income Fund
BEARISH
Price
$6.18
Market Cap
$342.3M
Sector
Financial Services
AI Confidence
85%
MA
Mastercard Incorporated
NEUTRAL
Price
$499.66
Market Cap
$445.92B
Sector
Financial Services
AI Confidence
80%

Valuation

P/E Ratio
HFRO
--
MA
30.28
Forward P/E
HFRO
--
MA
22.05
P/B Ratio
HFRO
--
MA
57.74
P/S Ratio
HFRO
--
MA
13.6
EV/EBITDA
HFRO
--
MA
22.13

Profitability

Gross Margin
HFRO
0.0%
MA
100.0%
Operating Margin
HFRO
0.0%
MA
57.73%
Profit Margin
HFRO
0.0%
MA
45.65%
ROE
HFRO
--
MA
209.91%
ROA
HFRO
--
MA
23.72%

Growth

Revenue Growth
HFRO
--
MA
17.6%
Earnings Growth
HFRO
--
MA
24.2%

Financial Health

Debt/Equity
HFRO
--
MA
2.56
Current Ratio
HFRO
--
MA
1.03
Quick Ratio
HFRO
--
MA
0.68

Dividends

Dividend Yield
HFRO
7.48%
MA
0.7%
Payout Ratio
HFRO
210.0%
MA
18.4%

AI Verdict

HFRO BEARISH

HFRO exhibits severe financial distress as evidenced by a critical Piotroski F-Score of 1/9, indicating poor operational health. The fund is currently operating as a 'yield trap,' with a dividend payout ratio of 210% that is fundamentally unsustainable and likely eroding the fund's principal. With 0% profit margins and a completely bearish technical trend (0/100), the recent 1-year price recovery appears disconnected from the underlying financial deterioration. The lack of available valuation metrics like the Graham Number further complicates a defensive entry, making the risk-reward profile highly unfavorable.

Strengths
Strong 1-year price appreciation (+31.2%)
Attractive headline dividend yield of 7.48%
Recent short-term momentum (1-month change +12.9%)
Risks
Unsustainable payout ratio of 210% indicating capital return rather than earnings
Critical Piotroski F-Score (1/9) signaling severe financial weakness
Zero percent profit and operating margins
MA NEUTRAL

MA shows neutral fundamentals based on deterministic rules. Financial strength is strong (F-Score 6/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (45.6% margin)
Strong revenue growth of 17.6%
Strong ROE of 209.9%
Risks
High valuation with P/E of 30.3
Premium vs Graham Number ($56.68)
High debt burden with D/E of 2.56

Compare Another Pair

HFRO vs MA: Head-to-Head Comparison

This page compares Highland Funds I - Highland Opportunities and Income Fund (HFRO) and Mastercard Incorporated (MA) 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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