Advanced Flower Capital Inc. (AFCG) vs Hennessy Advisors, Inc. (HNNA)

Advanced Flower Capital Inc. and Hennessy Advisors, Inc. are both Asset Management companies. Advanced Flower Capital Inc. and Hennessy Advisors, Inc. are of similar size ($80.6M and $78.2M). Advanced Flower Capital Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.8×. Advanced Flower Capital Inc. grew revenue faster over the last twelve months: 2.92% against −6.90%. Hennessy Advisors, Inc. has the higher net margin (24.8% vs 16.0%) and the higher return on invested capital (10.6% vs 3.97%). Both pay a dividend; Advanced Flower Capital Inc. yields more (17.7% vs 8.33%). Across the 20 metrics below, Hennessy Advisors, Inc. leads on 15 and Advanced Flower Capital Inc. on 5.

Valuation

Metric AFCG HNNA Asset Management median
P/E n/m 9.79 14.62
P/S 2.73 2.41 2.97
P/B 0.44 0.80 0.94
Price to free cash flow n/m 7.90 8.93
EV/EBITDA 7.49 7.11 10.32
EV/Sales 3.51 2.55 5.72
Earnings yield (4.91%) 10.22% 4.53%
Free cash flow yield (35.33%) 12.65% 4.65%

Profitability

Metric AFCG HNNA Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 44.28% 33.42% 33.03%
Net margin 16.02% 24.78% 13.53%
Free cash flow margin (104.20%) 30.53% 12.44%
Return on equity 2.60% 8.36% 4.83%
Return on assets 1.40% 5.88% 1.57%
Return on invested capital 3.97% 10.59% 3.04%

Growth

Metric AFCG HNNA Asset Management median
Revenue growth (TTM) 2.92% (6.90%) 6.97%
EPS growth (last fiscal year) (221.79%) 38.04% —
Revenue growth, 5-year CAGR 36.15% 1.26% 12.13%
Net income growth, 5-year CAGR 0.00% 4.90% 0.00%

Health

Metric AFCG HNNA Asset Management median
Debt to equity 0.69 0.00 0.42
Current ratio 1.34 9.39 1.28
Net debt to EBITDA (1.80) (2.37) 1.06

Dividend

Metric AFCG HNNA Asset Management median
Dividend yield 17.69% 8.33% 6.92%
Payout ratio 1.21 0.86 0.77

Size

Metric AFCG HNNA Asset Management median
Market cap 78.19m 80.55m 721.34m

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