Noah (NOAH) & Hennessy Advisors (NASDAQ:HNNA) Head-To-Head Contrast

Hennessy Advisors (NASDAQ:HNNA) and Noah (NYSE:NOAH) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Dividends

Hennessy Advisors pays an annual dividend of $0.44 per share and has a dividend yield of 4.5%. Noah does not pay a dividend. Hennessy Advisors has increased its dividend for 4 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Hennessy Advisors and Noah, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hennessy Advisors 0 0 0 0 N/A
Noah 0 2 1 0 2.33

Noah has a consensus price target of $52.00, suggesting a potential upside of 2.97%. Given Noah’s higher possible upside, analysts clearly believe Noah is more favorable than Hennessy Advisors.

Valuation & Earnings

This table compares Hennessy Advisors and Noah’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hennessy Advisors $54.59 million 1.41 $20.61 million N/A N/A
Noah $478.45 million 6.06 $118.00 million $1.94 26.03

Noah has higher revenue and earnings than Hennessy Advisors.

Insider and Institutional Ownership

17.4% of Hennessy Advisors shares are held by institutional investors. Comparatively, 51.7% of Noah shares are held by institutional investors. 40.7% of Hennessy Advisors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Hennessy Advisors and Noah’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hennessy Advisors 29.56% 22.40% 14.62%
Noah 24.75% 15.00% 11.34%

Volatility & Risk

Hennessy Advisors has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Noah has a beta of 1.65, indicating that its stock price is 65% more volatile than the S&P 500.

Summary

Noah beats Hennessy Advisors on 8 of the 14 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.

Noah Company Profile

Noah Holdings Limited, through its subsidiaries, operates as a wealth and asset management service provider with focus on wealth investment and asset allocation services for high net worth individuals and enterprises in the People's Republic of China. The company operates through three segments: Wealth Management, Asset Management, and Other Financial Service. It offers onshore and offshore fixed income, private equity, secondary market equity, and insurance products; and value-added financial and related services, such as investor education, corporate registration and tax planning, trust, financial leasing, and philanthropy. The company also provides private equity, real estate, secondary market equity, credit, and other investments; and online wealth management, lending, and payment technology services. The company was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

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