Analyzing Diamond Hill Investment Group (NASDAQ:DHIL) & East Resources Acquisition (NASDAQ:ERES)

Diamond Hill Investment Group (NASDAQ:DHIL) and East Resources Acquisition (NASDAQ:ERES) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Earnings and Valuation

This table compares Diamond Hill Investment Group and East Resources Acquisition’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Diamond Hill Investment Group	$154.50 million	3.09	$40.43 million	$14.51	11.41
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A

Diamond Hill Investment Group has higher revenue and earnings than East Resources Acquisition.

Volatility & Risk

Diamond Hill Investment Group has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, East Resources Acquisition has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Diamond Hill Investment Group and East Resources Acquisition, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Diamond Hill Investment Group	0	0	0	0	N/A
East Resources Acquisition	0	0	0	0	N/A

Profitability

This table compares Diamond Hill Investment Group and East Resources Acquisition’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Diamond Hill Investment Group	31.55%	19.86%	13.39%
East Resources Acquisition	N/A	N/A	-7.08%

Insider and Institutional Ownership

65.5% of Diamond Hill Investment Group shares are held by institutional investors. Comparatively, 18.5% of East Resources Acquisition shares are held by institutional investors. 3.8% of Diamond Hill Investment Group shares are held by insiders. Comparatively, 47.0% of East Resources Acquisition shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Diamond Hill Investment Group beats East Resources Acquisition on 7 of the 8 factors compared between the two stocks.

About Diamond Hill Investment Group

Diamond Hill Investment Group, Inc., through its subsidiary, Diamond Hill Capital Management, Inc., provides investment advisory and fund administration services in the United States. It sponsors, distributes, and offers investment advisory and related services to its clients through pooled investment vehicles, including the Diamond Hill Funds, separately managed accounts, and model delivery programs. 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. Diamond Hill Investment Group, Inc. was founded in 1990 and is based in Columbus, Ohio.

About East Resources Acquisition

East Resources Acquisition Company does not have significant operations. The company focuses on effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of energy in North America. The company was incorporated in 2020 and is headquartered in Boca Raton, Florida.