Hennessy Advisors, Inc. (HNNA) vs Pearl Diver Credit Company Inc. (PDCC)

Hennessy Advisors, Inc. and Pearl Diver Credit Company Inc. are both Asset Management companies. Hennessy Advisors, Inc. is the larger, with a market value of $82.5M against $66.1M — 1.2× the size. Pearl Diver Credit Company Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.9×. Both pay a dividend; Pearl Diver Credit Company Inc. yields more (32.8% vs 5.73%). Across the 3 metrics below, Hennessy Advisors, Inc. leads on 2 and Pearl Diver Credit Company Inc. on 1.

Valuation

Metric HNNA PDCC Asset Management median
P/E 9.86 n/m 13.99
P/S 2.43 — 2.76
P/B 0.80 — 0.85
Price to free cash flow 7.96 — 8.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.15% (28.00%) 4.72%
Free cash flow yield 12.56% — 4.44%

Profitability

Metric HNNA PDCC Asset Management median
Gross margin 100.00% — 100.00%
Operating margin 33.42% — 33.42%
Net margin 24.78% — 13.37%
Free cash flow margin 30.53% — 12.36%
Return on equity 8.36% — 4.79%
Return on assets 5.88% 0.00% 1.55%
Return on invested capital 10.59% — 2.97%

Growth

Metric HNNA PDCC Asset Management median
Revenue growth (TTM) (6.90%) — 7.42%
EPS growth (last fiscal year) 38.04% — (6.67%)
Revenue growth, 5-year CAGR 1.26% — 12.51%
Net income growth, 5-year CAGR 4.90% — 0.00%

Health

Metric HNNA PDCC Asset Management median
Debt to equity 0.00 — 0.44
Current ratio 9.39 — 1.30
Net debt to EBITDA (2.37) — 1.02

Dividend

Metric HNNA PDCC Asset Management median
Dividend yield 5.73% 32.77% 6.60%
Payout ratio 0.56 — 0.94

Size

Metric HNNA PDCC Asset Management median
Market cap 82.45m 66.09m 694.86m

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