Contrasting Hennessy Advisors (NASDAQ:HNNA) and Highest Performances (NASDAQ:HPH)

Highest Performances (NASDAQ:HPH) and Hennessy Advisors (NASDAQ:HNNA) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, analyst recommendations, valuation, earnings and risk.

Insider and Institutional Ownership

10.3% of Hennessy Advisors shares are owned by institutional investors. 87.6% of Highest Performances shares are owned by insiders. Comparatively, 37.8% of Hennessy Advisors shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Highest Performances and Hennessy Advisors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Highest Performances	N/A	N/A	N/A
Hennessy Advisors	22.53%	6.89%	4.16%

Valuation & Earnings

This table compares Highest Performances and Hennessy Advisors”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Highest Performances	$15.78 million	15.17	-$6.01 million	N/A	N/A
Hennessy Advisors	$27.13 million	2.79	$4.77 million	$0.68	14.47

Hennessy Advisors has higher revenue and earnings than Highest Performances.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Highest Performances and Hennessy Advisors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Highest Performances	0	0	0	0	N/A
Hennessy Advisors	0	0	0	0	N/A

Volatility & Risk

Highest Performances has a beta of -0.31, indicating that its stock price is 131% less volatile than the S&P 500. Comparatively, Hennessy Advisors has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500.

Summary

Hennessy Advisors beats Highest Performances on 7 of the 9 factors compared between the two stocks.

About Highest Performances

Highest Performances Holdings Inc. engages in the provision of financial technology services in China. The company distributes publicly raised fund and privately raised securities investment fund products through online and offline. It also offers insurance consulting, trust consulting, asset management, wealth management, and other ancillary services. The company was formerly known as Puyi Inc. and changed its name to Highest Performances Holdings Inc. in March 2024. Highest Performances Holdings Inc. was founded in 2010 and is headquartered in Guangzhou, China.

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.