Analyzing Great Elm Capital (NASDAQ:GECC) and Hennessy Advisors (NASDAQ:HNNA)
Hennessy Advisors (NASDAQ:HNNA) and Great Elm Capital (NASDAQ:GECC) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
This is a breakdown of current ratings and price targets for Hennessy Advisors and Great Elm Capital, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Great Elm Capital||0||0||0||0||N/A|
Hennessy Advisors pays an annual dividend of $0.55 per share and has a dividend yield of 5.4%. Great Elm Capital pays an annual dividend of $1.00 per share and has a dividend yield of 12.3%. Great Elm Capital pays out 69.4% of its earnings in the form of a dividend. Hennessy Advisors has raised its dividend for 4 consecutive years.
Risk and Volatility
Hennessy Advisors has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500. Comparatively, Great Elm Capital has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.
Valuation & Earnings
This table compares Hennessy Advisors and Great Elm Capital’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hennessy Advisors||$42.72 million||1.78||$11.03 million||N/A||N/A|
|Great Elm Capital||$27.75 million||2.94||-$9.01 million||$1.44||5.63|
Hennessy Advisors has higher revenue and earnings than Great Elm Capital.
This table compares Hennessy Advisors and Great Elm Capital’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Great Elm Capital||-68.41%||10.59%||3.69%|
Institutional and Insider Ownership
11.2% of Hennessy Advisors shares are held by institutional investors. Comparatively, 16.9% of Great Elm Capital shares are held by institutional investors. 42.8% of Hennessy Advisors shares are held by insiders. Comparatively, 1.4% of Great Elm Capital shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Hennessy Advisors beats Great Elm Capital on 10 of the 13 factors compared between the two stocks.
Hennessy Advisors Company Profile
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.
Great Elm Capital Company Profile
Great Elm Capital Corporation is a business development company which specializes in loan and mezzanine, middle market investments. The fund prefers to invest in media, commercial services and supplies, healthcare, telecommunication services, communications equipment. It typically makes equity investments between $3 million and $10 million in companies with revenues between $3 million and $75 million.
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