Financial Review: Hennessy Advisors (HNNA) & Its Peers

Hennessy Advisors (NASDAQ:HNNA) is one of 1,744 publicly-traded companies in the “Capital Markets” industry, but how does it compare to its rivals? We will compare Hennessy Advisors to similar businesses based on the strength of its risk, valuation, analyst recommendations, earnings, profitability, dividends and institutional ownership.

Valuation and Earnings

This table compares Hennessy Advisors and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Hennessy Advisors	$33.34 million	$9.96 million	9.95
Hennessy Advisors Competitors	$5.22 billion	$399.10 million	17.59

Hennessy Advisors’ rivals have higher revenue and earnings than Hennessy Advisors. Hennessy Advisors is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

10.3% of Hennessy Advisors shares are held by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are held by institutional investors. 36.0% of Hennessy Advisors shares are held by insiders. Comparatively, 13.0% of shares of all “Capital Markets” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Hennessy Advisors has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Hennessy Advisors’ rivals have a beta of 0.82, indicating that their average share price is 18% less volatile than the S&P 500.

Profitability

This table compares Hennessy Advisors and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hennessy Advisors	24.77%	8.31%	5.48%
Hennessy Advisors Competitors	318.34%	79.19%	3.72%

Analyst Ratings

This is a breakdown of recent recommendations for Hennessy Advisors and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennessy Advisors	0	1	0	0	2.00
Hennessy Advisors Competitors	5551	20124	22459	642	2.37

As a group, “Capital Markets” companies have a potential upside of 24.42%. Given Hennessy Advisors’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Hennessy Advisors has less favorable growth aspects than its rivals.

Dividends

Hennessy Advisors pays an annual dividend of $0.60 per share and has a dividend yield of 5.8%. Hennessy Advisors pays out 57.7% of its earnings in the form of a dividend. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 30.0% of their earnings in the form of a dividend.

Summary

Hennessy Advisors rivals beat Hennessy Advisors on 12 of the 15 factors compared.

Hennessy Advisors Company Profile

Hennessy Advisors, Inc. is an employee 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.