Critical Survey: Hennessy Advisors (NASDAQ:HNNA) vs. Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE:ETO)

Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (NYSE:ETO) and Hennessy Advisors (NASDAQ:HNNA) are both financial services companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Analyst Recommendations

This is a summary of recent ratings and price targets for Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund and Hennessy Advisors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund	0	0	0	0	N/A
Hennessy Advisors	0	0	0	0	N/A

Insider & Institutional Ownership

10.3% of Hennessy Advisors shares are held by institutional investors. 37.8% of Hennessy Advisors shares are held 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.

Earnings and Valuation

This table compares Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund and Hennessy Advisors’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund	$66.50 million	N/A	N/A	N/A	N/A
Hennessy Advisors	$27.13 million	2.72	$4.77 million	$0.68	14.15

Hennessy Advisors has lower revenue, but higher earnings than Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund.

Profitability

This table compares Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund and Hennessy Advisors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund	N/A	N/A	N/A
Hennessy Advisors	20.75%	5.90%	3.57%

Dividends

Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund pays an annual dividend of $1.82 per share and has a dividend yield of 7.0%. Hennessy Advisors pays an annual dividend of $0.55 per share and has a dividend yield of 5.7%. Hennessy Advisors pays out 80.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Hennessy Advisors beats Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund on 5 of the 8 factors compared between the two stocks.

About Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund

Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund is a closed ended equity mutual fund launched and managed by Eaton Vance Management. It invests in public equity markets across the globe. The fund seeks to invest in the stocks of companies operating across diversified sectors. It primarily invests in dividend paying value stocks of companies. The fund employs fundamental analysis to create its portfolio. It benchmarks the performance of its portfolio against the MSCI World Index. Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund was formed on April 30, 2004 and is domiciled in the United States.

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.