Focus Financial Partners (NASDAQ:FOCS) and Hennessy Advisors (NASDAQ:HNNA) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.
Hennessy Advisors pays an annual dividend of $0.44 per share and has a dividend yield of 4.7%. Focus Financial Partners does not pay a dividend. Hennessy Advisors has raised its dividend for 4 consecutive years.
79.7% of Focus Financial Partners shares are owned by institutional investors. Comparatively, 17.1% of Hennessy Advisors shares are owned by institutional investors. 0.1% of Focus Financial Partners shares are owned by insiders. Comparatively, 40.7% of Hennessy Advisors shares are owned 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.
This table compares Focus Financial Partners and Hennessy Advisors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Focus Financial Partners||-3.12%||21.17%||4.70%|
This is a summary of current ratings and price targets for Focus Financial Partners and Hennessy Advisors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Focus Financial Partners||0||4||3||0||2.43|
Focus Financial Partners presently has a consensus target price of $40.75, indicating a potential upside of 44.86%. Given Focus Financial Partners’ higher probable upside, equities research analysts plainly believe Focus Financial Partners is more favorable than Hennessy Advisors.
Earnings and Valuation
This table compares Focus Financial Partners and Hennessy Advisors’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Focus Financial Partners||$910.88 million||2.14||-$590,000.00||$0.99||28.41|
|Hennessy Advisors||$54.59 million||1.36||$20.61 million||N/A||N/A|
Hennessy Advisors has lower revenue, but higher earnings than Focus Financial Partners.
Focus Financial Partners beats Hennessy Advisors on 7 of the 13 factors compared between the two stocks.
About Focus Financial Partners
Focus Financial Partners Inc. provides wealth management services to primarily high net worth individuals and families. Its wealth management services include investment advice, financial and tax planning, consulting, tax return preparation, family office services, and other services. The company also offers recordkeeping and administration services. Focus Financial Partners Inc. was founded in 2006 and is headquartered in New York, New York.
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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