Hennessy Advisors, Inc. (HNNA) vs ZeroStack Corp. (ZSTK)

Hennessy Advisors, Inc. and ZeroStack Corp. are both Asset Management companies. Hennessy Advisors, Inc. and ZeroStack Corp. are of similar size ($87.3M and $80.6M). ZeroStack Corp. has negative trailing earnings, so its P/E is not meaningful; Hennessy Advisors, Inc. trades at 9.8×. ZeroStack Corp. grew revenue faster over the last twelve months: 113.8% against −6.90%. Hennessy Advisors, Inc. has the higher net margin (24.8% vs −444.2%) and the higher return on invested capital (10.6% vs −1,117.9%). Across the 19 metrics below, Hennessy Advisors, Inc. leads on 15 and ZeroStack Corp. on 4.

Valuation

Metric HNNA ZSTK Asset Management median
P/E 9.79 n/m 14.62
P/S 2.41 1.01 2.97
P/B 0.80 2.93 0.94
Price to free cash flow 7.90 n/m 8.93
EV/EBITDA 7.11 n/m 10.32
EV/Sales 2.55 1.00 5.72
Earnings yield 10.22% (1,077.01%) 4.53%
Free cash flow yield 12.65% (14.13%) 4.65%

Profitability

Metric HNNA ZSTK Asset Management median
Gross margin 100.00% 13.14% 100.00%
Operating margin 33.42% (592.73%) 33.03%
Net margin 24.78% (444.23%) 13.53%
Free cash flow margin 30.53% (13.99%) 12.44%
Return on equity 8.36% (1,993.58%) 4.83%
Return on assets 5.88% (743.25%) 1.57%
Return on invested capital 10.59% (1,117.92%) 3.04%

Growth

Metric HNNA ZSTK Asset Management median
Revenue growth (TTM) (6.90%) 113.78% 6.97%
EPS growth (last fiscal year) 38.04% 14.36% —
Revenue growth, 5-year CAGR 1.26% 220.19% 12.13%
Net income growth, 5-year CAGR 4.90% 0.00% 0.00%

Health

Metric HNNA ZSTK Asset Management median
Debt to equity 0.00 0.17 0.42
Current ratio 9.39 0.95 1.28
Net debt to EBITDA (2.37) (0.31) 1.06

Dividend

Metric HNNA ZSTK Asset Management median
Dividend yield 8.33% — 6.92%
Payout ratio 0.86 0.00 0.77

Size

Metric HNNA ZSTK Asset Management median
Market cap 80.55m 87.28m 721.34m

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