Head-To-Head Survey: Binah Capital Group (NASDAQ:BCG) vs. Hennessy Advisors (NASDAQ:HNNA)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Binah Capital Group and Hennessy Advisors, as reported by MarketBeat.

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

Profitability

This table compares Binah Capital Group and Hennessy Advisors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Binah Capital Group	2.17%	195.38%	5.95%
Hennessy Advisors	24.77%	8.31%	5.48%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Binah Capital Group	$187.14 million	0.10	$2.31 million	$0.18	5.81
Hennessy Advisors	$33.34 million	2.42	$9.96 million	$1.04	9.82

Hennessy Advisors has lower revenue, but higher earnings 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.

Risk & Volatility

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

Insider & Institutional Ownership

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

Summary

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

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.

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.