AssetMark Financial (NYSE:AMK) and Hennessy Advisors (NASDAQ:HNNA) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

Hennessy Advisors pays an annual dividend of $0.55 per share and has a dividend yield of 4.8%. AssetMark Financial does not pay a dividend.

Earnings & Valuation

This table compares AssetMark Financial and Hennessy Advisors’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AssetMark Financial N/A N/A N/A N/A N/A
Hennessy Advisors $54.59 million 1.59 $20.61 million N/A N/A

Hennessy Advisors has higher revenue and earnings than AssetMark Financial.

Profitability

This table compares AssetMark Financial and Hennessy Advisors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AssetMark Financial N/A N/A N/A
Hennessy Advisors 26.84% 16.61% 11.25%

Analyst Ratings

This is a summary of recent ratings and recommmendations for AssetMark Financial and Hennessy Advisors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AssetMark Financial 0 3 2 0 2.40
Hennessy Advisors 0 0 0 0 N/A

AssetMark Financial currently has a consensus price target of $28.75, indicating a potential upside of 14.54%. Given AssetMark Financial’s higher possible upside, equities research analysts clearly believe AssetMark Financial is more favorable than Hennessy Advisors.

Institutional and Insider Ownership

20.7% of AssetMark Financial shares are held by institutional investors. Comparatively, 11.3% of Hennessy Advisors shares are held by institutional investors. 40.7% of Hennessy Advisors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Hennessy Advisors beats AssetMark Financial on 6 of the 9 factors compared between the two stocks.

About AssetMark Financial

AssetMark Financial Holdings, Inc. provides wealth management and technology solutions in the United States. The company offers an open-architecture product platform, as well as client advice, asset allocation options, practice management, support services, and technology to the financial adviser channel. It offers an integrated technology platform that allows advisers to do research and portfolio analysis, create proposals, open and maintain accounts, implement investments, and meet reporting obligations; delivers its platform and solutions through people who get to know the company's clients; and provides curated platform of investment options. The company also offers mutual funds to clients of financial advisers; custodial recordkeeping services primarily to investor clients of registered investment advisers; and record-keeper and third-party administrator services for retirement products. It serves independent advisers who provide wealth management advice to the U.S. investors. The company was founded in 1996 and is headquartered in Concord, California. AssetMark Financial Holdings, Inc. is a subsidiary of AssetMark Holdings LLC.

About Hennessy Advisors

Hennessy Advisors, Inc. is publicly owned investment manager. It provides its services to Hennessy Funds and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.

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