Hennessy Advisors ( NASDAQ:HNNA ) and Manning and Napier ( NYSE:MN ) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Insider & Institutional Ownership
Get Hennessy Advisors alerts: 17.8% of Hennessy Advisors shares are investors. Comparatively, 51.3% of Manning and Napier shares are investors. 41.6% of Hennessy Advisors shares are owned by company insiders. Comparatively, 3.4% of Manning and Napier shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Hennessy Advisors and Manning and Napier’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Hennessy Advisors 37.76% 25.31% 16.11% Manning and Napier 0.73% 12.17% 8.56% Analyst Ratings
This is a summary of recent recommendations for Hennessy Advisors and Manning and Napier, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Hennessy Advisors 0 0 0 0 N/A Manning and Napier 0 0 0 0 N/A
Earnings & Valuation
This table compares Hennessy Advisors and Manning and Napier’s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Hennessy Advisors $54.59 million 1.74 $20.61 million N/A N/A Manning and Napier $201.53 million 0.13 $3.58 million $0.40 4.38 Hennessy Advisors has higher earnings, but lower revenue than Manning and Napier.
Dividends
Hennessy Advisors pays an annual dividend of $0.44 per share and has a dividend yield of 3.7%. Manning and Napier pays an annual dividend of $0.32 per share and has a dividend yield of 18.3%. Manning and Napier pays out 80.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hennessy Advisors has increased its dividend for 3 consecutive years.
Risk and Volatility
Hennessy Advisors has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500. Comparatively, Manning and Napier has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500.
Summary
Hennessy Advisors beats Manning and Napier on 9 of the 13 factors compared between the two stocks.
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.
About Manning and Napier
Manning & Napier, Inc. is publicly owned investment manager. It provides its services to net worth individuals and institutions, including 401(k) plans, pension plans, taft-hartley plans, endowments and foundations. The firm manages separate client-focused equity and fixed income portfolios. It invests in the public equity and fixed income markets of the United States. The firm employs fundamental analysis along with a combination of bottom-up and top-down stock picking approach to create its portfolios. Manning & Napier, Inc. was founded in 1970 and is based in Fairport, New York with additional offices in Dublin, Ohio; St. Petersburg, Florida; and Chicago, Illinois.
Hennessy Advisors Hennessy Advisors
