Critical Comparison: Hennessy Advisors (HNNA) and Diamond Hill Investment Group (DHIL)
Hennessy Advisors (NASDAQ:HNNA) and Diamond Hill Investment Group (NASDAQ:DHIL) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
This is a summary of recent ratings and recommmendations for Hennessy Advisors and Diamond Hill Investment Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Diamond Hill Investment Group||0||0||0||0||N/A|
Insider and Institutional Ownership
17.1% of Hennessy Advisors shares are held by institutional investors. Comparatively, 55.1% of Diamond Hill Investment Group shares are held by institutional investors. 40.7% of Hennessy Advisors shares are held by company insiders. Comparatively, 6.3% of Diamond Hill Investment Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Hennessy Advisors pays an annual dividend of $0.44 per share and has a dividend yield of 4.7%. Diamond Hill Investment Group does not pay a dividend. Hennessy Advisors has raised its dividend for 4 consecutive years.
This table compares Hennessy Advisors and Diamond Hill Investment Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Diamond Hill Investment Group||36.55%||21.83%||14.23%|
Earnings & Valuation
This table compares Hennessy Advisors and Diamond Hill Investment Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hennessy Advisors||$54.59 million||1.36||$20.61 million||N/A||N/A|
|Diamond Hill Investment Group||$145.63 million||3.44||$47.38 million||N/A||N/A|
Diamond Hill Investment Group has higher revenue and earnings than Hennessy Advisors.
Risk and Volatility
Hennessy Advisors has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Diamond Hill Investment Group has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.
Diamond Hill Investment Group beats Hennessy Advisors on 8 of the 12 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 Diamond Hill Investment Group
Diamond Hill Investment Group, Inc., together with its subsidiaries, provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to a range of clients, such as corporations, mutual funds, retirement plans, public pension funds, endowments, foundations, financial institutions, and high net worth individuals. The company also provides fund administration services, including portfolio and regulatory compliance, treasury and financial oversight, and general business management and governance of the mutual fund complex, as well as oversight of back-office service providers, such as the custodian, fund accountant, and transfer agent. It offers investment advisory services to third-party financial intermediaries comprising independent registered investment advisors, brokers, financial planners, and wealth advisers; and fund administration services primarily to mutual funds, institutional accounts, and private investment funds. The company was founded in 1990 and is based in Columbus, Ohio.
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