The horizontal layout is much less readable.
In my opition, this case is the only exception:
(x) yes ( ) no
(not to mention lay outs used in A/B tests, where two images are displayed horizontally with a radio button underneath each one)
Even if the labels are "left/center/right", I don't see components being used that way. If we want to mimic something, we use icons. If the user chooses "left", they want 'something' to be the on the left, not the label. It's like writing the "blue" option in blue, the "red" option in red... it might sound as a good mapping, but it's weird in professional designs, because:
- it is not consistent with the font color of the other fields; (it is not forbidden to break patterns, you just need a good reason for that)
- the user wants 'the thing' to be blue, not the form field;
- the blue color used in the text may not be exactly like the blue of the result (e.g. the user is choosing the color of a machine; when it is "blue", it has some parts in dark blue, some in light blue and some in white and gray. What shadow of blue should you use?)
The only place where I think coloring the field text works is when the user is choosing exactly the text color, which is more an icon than a colored text. The same applies to left/center/right options in regular fields.
So, I don't see any reason to use horizontal radio buttons.
You can also try a drop down menu if you need to save space.