Hennessy Advisors (NASDAQ:HNNA) and East Resources Acquisition (NASDAQ:ERES) Financial Contrast

East Resources Acquisition (NASDAQ:ERES) and Hennessy Advisors (NASDAQ:HNNA) are both small-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Institutional and Insider Ownership

18.5% of East Resources Acquisition shares are owned by institutional investors. Comparatively, 10.3% of Hennessy Advisors shares are owned by institutional investors. 47.0% of East Resources Acquisition shares are owned by company insiders. Comparatively, 37.8% of Hennessy Advisors shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

East Resources Acquisition has a beta of -0.02, meaning that its share price is 102% less volatile than the S&P 500. Comparatively, Hennessy Advisors has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.

Profitability

This table compares East Resources Acquisition and Hennessy Advisors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
East Resources Acquisition	N/A	N/A	-7.08%
Hennessy Advisors	22.53%	6.89%	4.16%

Valuation & Earnings

This table compares East Resources Acquisition and Hennessy Advisors’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A
Hennessy Advisors	$27.13 million	2.88	$4.77 million	$0.68	14.94

Hennessy Advisors has higher revenue and earnings than East Resources Acquisition.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for East Resources Acquisition and Hennessy Advisors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
East Resources Acquisition	0	0	0	0	N/A
Hennessy Advisors	0	0	0	0	N/A

Summary

Hennessy Advisors beats East Resources Acquisition on 6 of the 8 factors compared between the two stocks.

About East Resources Acquisition

East Resources Acquisition Company does not have significant operations. The company focuses on effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It intends to identify business opportunities in the field of energy in North America. The company was incorporated in 2020 and is headquartered in Boca Raton, Florida.

About Hennessy Advisors

Hennessy Advisors, Inc. is an employee 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.