Contrasting Hennessy Advisors (NASDAQ:HNNA) & Binah Capital Group (NASDAQ:BCG)

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

Institutional and Insider Ownership

10.3% of Hennessy Advisors shares are owned by institutional investors. Comparatively, 5.0% of Binah Capital Group shares are owned by institutional investors. 36.0% of Hennessy Advisors shares are owned by company insiders. Comparatively, 7.8% of Binah Capital Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Hennessy Advisors has a beta of 0.56, meaning that its share price is 44% less volatile than the S&P 500. Comparatively, Binah Capital Group has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Hennessy Advisors and Binah Capital Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennessy Advisors	0	1	0	0	2.00
Binah Capital Group	1	0	0	0	1.00

Earnings and Valuation

This table compares Hennessy Advisors and Binah Capital Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennessy Advisors	$35.54 million	2.27	$9.96 million	$1.04	9.80
Binah Capital Group	$187.14 million	0.10	$2.31 million	$0.18	5.83

Hennessy Advisors has higher earnings, but lower revenue than Binah Capital Group. Binah Capital Group is trading at a lower price-to-earnings ratio than Hennessy Advisors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Hennessy Advisors and Binah Capital Group’s 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%
Binah Capital Group	2.17%	195.38%	5.95%

Summary

Hennessy Advisors beats Binah Capital Group on 9 of the 12 factors compared between the two stocks.

About Hennessy Advisors

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.

About Binah Capital Group

Binah Capital Group, Inc., together with its subsidiaries, operates in the wealth management industry. The company provides access to stock, bond, exchange-traded fund, and options execution services; and research, compliance, supervision, and accounting and related services for financial advisors. It also offers mutual funds and insurance products, as well as alternative investments, such as non-traded real estate investment trusts, unit trusts, and fixed and variable annuities. The company was founded in 2016 and is headquartered in Albany, New York. Binah Capital Group, Inc. operates as a subsidiary of MHC Securities, LLC.