U.S. Global Investors (NASDAQ:GROW) and Hennessy Advisors (NASDAQ:HNNA) are both small-cap finance companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Risk and Volatility
U.S. Global Investors has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Hennessy Advisors has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500.
Institutional and Insider Ownership
23.2% of U.S. Global Investors shares are owned by institutional investors. Comparatively, 18.2% of Hennessy Advisors shares are owned by institutional investors. 41.6% of Hennessy Advisors shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares U.S. Global Investors and Hennessy Advisors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|U.S. Global Investors||-29.56%||-5.84%||-5.26%|
U.S. Global Investors pays an annual dividend of $0.03 per share and has a dividend yield of 2.7%. Hennessy Advisors pays an annual dividend of $0.44 per share and has a dividend yield of 3.9%. Hennessy Advisors has raised its dividend for 3 consecutive years. Hennessy Advisors is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of current ratings and price targets for U.S. Global Investors and Hennessy Advisors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|U.S. Global Investors||0||0||0||0||N/A|
Earnings & Valuation
This table compares U.S. Global Investors and Hennessy Advisors’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|U.S. Global Investors||$6.26 million||2.73||$640,000.00||N/A||N/A|
|Hennessy Advisors||$54.59 million||1.66||$14.94 million||N/A||N/A|
Hennessy Advisors has higher revenue and earnings than U.S. Global Investors.
Hennessy Advisors beats U.S. Global Investors on 8 of the 11 factors compared between the two stocks.
About U.S. Global Investors
U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. It also manages hedge funds. The firm also manages exchange traded funds. It invests in the public equity and fixed income markets across the globe. It invests in G.A.R.P. and value stocks to make its equity investments. The firm employs a fundamental and quantitative analysis with top-down and bottom-up stock picking approach to make its investments. U.S. Global Investors, Inc. was founded in 1968 and is based in San Antonio, Texas.
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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