Great Elm Capital Group, Inc. (GECC) vs Hennessy Advisors, Inc. (HNNA)

Great Elm Capital Group, Inc. and Hennessy Advisors, Inc. are both Asset Management companies. Hennessy Advisors, Inc. is the larger, with a market value of $80.6M against $73.2M — 1.1× the size. Great Elm Capital Group, Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.8×. Hennessy Advisors, Inc. grew revenue faster over the last twelve months: −6.90% against −8.36%. Hennessy Advisors, Inc. has the higher net margin (24.8% vs −87.7%) and the higher return on invested capital (10.6% vs 3.06%). Both pay a dividend; Great Elm Capital Group, Inc. yields more (13.5% vs 8.33%). Across the 21 metrics below, Hennessy Advisors, Inc. leads on 12 and Great Elm Capital Group, Inc. on 9.

Valuation

Metric GECC HNNA Asset Management median
P/E n/m 9.79 14.62
P/S 1.68 2.41 2.97
P/B 0.66 0.80 0.94
Price to free cash flow 2.44 7.90 8.93
EV/EBITDA 2.74 7.11 10.32
EV/Sales 5.35 2.55 5.72
Earnings yield (55.87%) 10.22% 4.53%
Free cash flow yield 40.91% 12.65% 4.65%

Profitability

Metric GECC HNNA Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 71.45% 33.42% 33.03%
Net margin (87.74%) 24.78% 13.53%
Free cash flow margin 68.73% 30.53% 12.44%
Return on equity (30.59%) 8.36% 4.83%
Return on assets (11.11%) 5.88% 1.57%
Return on invested capital 3.06% 10.59% 3.04%

Growth

Metric GECC HNNA Asset Management median
Revenue growth (TTM) (8.36%) (6.90%) 6.97%
EPS growth (last fiscal year) (813.89%) 38.04% —
Revenue growth, 5-year CAGR 16.90% 1.26% 12.13%
Net income growth, 5-year CAGR 0.00% 4.90% 0.00%

Health

Metric GECC HNNA Asset Management median
Debt to equity 1.47 0.00 0.42
Current ratio 0.93 9.39 1.28
Net debt to EBITDA 2.35 (2.37) 1.06

Dividend

Metric GECC HNNA Asset Management median
Dividend yield 13.52% 8.33% 6.92%
Payout ratio 1.29 0.86 0.77

Size

Metric GECC HNNA Asset Management median
Market cap 73.20m 80.55m 721.34m

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