We will be comparing the differences between Prospect Capital Corporation (NASDAQ:PSEC) and Hennessy Advisors Inc. (NASDAQ:HNNA) as far as dividends, analyst recommendations, profitability, institutional ownership, risk, earnings and valuation are concerned. The two businesses are rivals in the Asset Management industry.
Earnings & Valuation
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Prospect Capital Corporation||705.17M||3.50||182.57M||0.50||13.39|
|Hennessy Advisors Inc.||52.42M||1.49||15.49M||2.49||4.21|
We can see in table 1 the earnings per share (EPS), gross revenue and valuation of Prospect Capital Corporation and Hennessy Advisors Inc. Hennessy Advisors Inc. appears to has lower revenue, but higher earnings than Prospect Capital Corporation. The business with the higher price-to-earnings out of the two companies is considered for more expensive of the two firms currently. Prospect Capital Corporation’s currently higher price-to-earnings ratio means it is more expensive than Hennessy Advisors Inc.
Table 2 provides the return on assets, return on equity and net margins of the two firms.
|Net Margins||Return on Equity||Return on Assets|
|Prospect Capital Corporation||25.89%||0%||0%|
|Hennessy Advisors Inc.||29.55%||22.4%||14.6%|
Prospect Capital Corporation shareholders receive an annual dividend of $0.72 per share which is subject to 10.75% dividend yield. Hennessy Advisors Inc. has an annual dividend pay of $0.41 per share while its annual dividend yield is 4.29%.
The table shown features the ratings and recommendations for Prospect Capital Corporation and Hennessy Advisors Inc.
|Sell Ratings||Hold Ratings||Buy Ratings||Rating Score|
|Prospect Capital Corporation||1||0||0||1.00|
|Hennessy Advisors Inc.||0||0||0||0.00|
Prospect Capital Corporation has a -10.85% downside potential and an average price target of $6.
Insider & Institutional Ownership
The shares of both Prospect Capital Corporation and Hennessy Advisors Inc. are owned by institutional investors at 13.31% and 17.4% respectively. Insiders held 17.41% of Prospect Capital Corporation shares. Insiders Competitively, held 40.8% of Hennessy Advisors Inc. shares.
In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.
|Performance (W)||Performance (M)||Performance (Q)||Performance (HY)||Performance (Y)||Performance (YTD)|
|Prospect Capital Corporation||-2.33%||-1.18%||-3.72%||-8.94%||2.44%||6.5%|
|Hennessy Advisors Inc.||-0.1%||-9.02%||-2.96%||-28.08%||-41.95%||4.8%|
For the past year Prospect Capital Corporation has stronger performance than Hennessy Advisors Inc.
Prospect Capital Corporation beats Hennessy Advisors Inc. on 10 of the 16 factors.
Prospect Capital Corporation is a business development company. It specializes in middle market, mature, mezzanine finance, later stage, emerging growth, buyouts, recapitalizations, turnaround, growth capital, development, subordinated debt tranches of collateralized loan obligations, cash flow term loans, and bridge transactions. It also makes real estate investments particularly in multi-family residential real estate asset class. The fund makes secured debt, senior debt, unitranche debt, first-lien and second lien, private debt, mezzanine debt, and equity investments in private and microcap public businesses. It focuses on both primary origination and secondary loans/portfolios and invests in situations like debt financings for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, real estate financings/investments. The fund typically invests across all industry sectors, with a particular expertise in the energy and industrial sectors. It invests in aerospace and defense, chemicals, conglomerate services, consumer services, ecological, electronics, financial services, machinery, manufacturing, media, pharmaceuticals, retail, software, specialty minerals, textiles and leather, transportation, oil and gas production, coal production, materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors. It prefers to invest in the United States and Canada. The fund seeks to invest between $10 million to $500 million per transaction in companies with EBITDA between $5 million and $250 million, sales value between $25 million and $500 million, and enterprise value between $5 million and $1000 million. It fund also co-invests for larger deals. The fund seeks control acquisitions by providing multiple levels of the capital structure. The fund focuses on sole, agented, club, or syndicated deals.
Hennessy Advisors, Inc. is publicly owned investment manager. It provides its services to Hennessy Funds and investment companies. The firm launches and manages equity, fixed income, and balanced mutual funds. It invests in the public equity and fixed income markets across the globe. The firm primarily invests in growth stocks of companies. It conducts in-house research to make its investments. Hennessy Advisors, Inc. was founded in 1989 and is based in Novato, California with additional offices in Boston, Massachusetts and Chapel Hill, North Carolina.