Hennessy Advisors (NASDAQ:HNNA) & East Resources Acquisition (NASDAQ:ERES) Head-To-Head Review

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

Volatility & Risk

Hennessy Advisors has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, East Resources Acquisition has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500.

Institutional & Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennessy Advisors	$27.13 million	2.90	$4.77 million	$0.68	15.04
East Resources Acquisition	N/A	N/A	-$640,000.00	N/A	N/A

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

Analyst Recommendations

This is a summary of recent recommendations for Hennessy Advisors and East Resources Acquisition, as reported by MarketBeat.

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

Profitability

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

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

Summary

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

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.

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.