Contrasting Hennessy Advisors (NASDAQ:HNNA) & Schroders (OTCMKTS:SHNWF)

Schroders (OTCMKTS:SHNWF) and Hennessy Advisors (NASDAQ:HNNA) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

10.3% of Hennessy Advisors shares are held by institutional investors. 37.4% of Hennessy Advisors shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Schroders has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, Hennessy Advisors has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Schroders	N/A	N/A	N/A
Hennessy Advisors	28.03%	10.40%	6.35%

Earnings and Valuation

This table compares Schroders and Hennessy Advisors”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Schroders	$3.80 billion	2.33	$532.88 million	N/A	N/A
Hennessy Advisors	$35.54 million	2.25	$9.96 million	$1.26	8.04

Schroders has higher revenue and earnings than Hennessy Advisors.

Analyst Recommendations

This is a summary of current ratings for Schroders and Hennessy Advisors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schroders	1	1	3	0	2.40
Hennessy Advisors	0	0	1	0	3.00

Summary

Hennessy Advisors beats Schroders on 6 of the 11 factors compared between the two stocks.

About Schroders

Schroders plc is a publicly owned investment manager. The firm also provides advisory and consultancy services. It provides its services to financial institutions, high net worth clients, large corporate, local authority, charitable entities, individuals, pension plans, government funds, insurance companies, and endowments. The firm launches and manages equity mutual funds and manages fixed income mutual funds for its clients. It also manages hedge for its clients. The firm invests in the public equity, fixed income, and alternative investment markets across the globe. The firm’s alternative investments include real estate markets, emerging market debt, commodities and agriculture funds, funds of hedge funds and private equity funds of funds. It conducts an in-house research to make its investments. The company was formerly known as New Schroders plc and changed its name to Schroders plc in April 2000. Schroders plc was founded on 1804 and is headquartered in London, United Kingdom.

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.