Hennessy Advisors, Inc. (HNNA) vs Sound Point Meridian Capital, Inc. (SPMC)

Hennessy Advisors, Inc. and Sound Point Meridian Capital, Inc. are both Asset Management companies. Sound Point Meridian Capital, Inc. is the larger, with a market value of $115.8M against $83.2M — 1.4× the size. Sound Point Meridian Capital, Inc. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.8×. Both pay a dividend; Sound Point Meridian Capital, Inc. yields more (46.9% vs 5.77%). Across the 3 metrics below, Hennessy Advisors, Inc. leads on 2 and Sound Point Meridian Capital, Inc. on 1.

Valuation

Metric HNNA SPMC Asset Management median
P/E 9.80 n/m 13.35
P/S 2.42 — 3.01
P/B 0.80 — 0.91
Price to free cash flow 7.91 — 7.27
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 10.21% (105.09%) 4.59%
Free cash flow yield 12.64% — 4.88%

Profitability

Metric HNNA SPMC Asset Management median
Gross margin 100.00% — 100.00%
Operating margin 33.42% — 28.39%
Net margin 24.78% — 11.89%
Free cash flow margin 30.53% — 5.96%
Return on equity 8.36% — 4.61%
Return on assets 5.88% 0.00% 1.45%
Return on invested capital 10.59% — 2.27%

Growth

Metric HNNA SPMC Asset Management median
Revenue growth (TTM) (6.90%) — 7.26%
EPS growth (last fiscal year) 38.04% — (5.64%)
Revenue growth, 5-year CAGR 1.26% — 11.84%
Net income growth, 5-year CAGR 4.90% — 0.00%

Health

Metric HNNA SPMC Asset Management median
Debt to equity 0.00 — 0.39
Current ratio 9.39 — 1.25
Net debt to EBITDA (2.37) — 1.06

Dividend

Metric HNNA SPMC Asset Management median
Dividend yield 5.77% 46.91% 6.43%
Payout ratio 0.56 — 0.92

Size

Metric HNNA SPMC Asset Management median
Market cap 83.15m 115.83m 677.66m

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