Montanaro UK Smaller Companies (MTU) Competitors

Henderson European Trust (LON:HET) and Montanaro UK Smaller Companies (LON:MTU) are both small-cap financial services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, analyst recommendations, profitability, institutional ownership, dividends, media sentiment and valuation.

Which has better valuation and earnings, HET or MTU?

Henderson European Trust has higher revenue and earnings than Montanaro UK Smaller Companies. Montanaro UK Smaller Companies is trading at a lower price-to-earnings ratio than Henderson European Trust, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Henderson European Trust	£75.38M	8.86	£71.73M	£0.34	592.65
Montanaro UK Smaller Companies	£28.80M	5.79	£26.33M	£15.79	6.34

Which has more volatility and risk, HET or MTU?

Henderson European Trust has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Montanaro UK Smaller Companies has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500.

Is HET or MTU a better dividend stock?

Henderson European Trust pays an annual dividend of GBX 6 per share and has a dividend yield of 3.0%. Montanaro UK Smaller Companies pays an annual dividend of GBX 5 per share and has a dividend yield of 5.0%. Henderson European Trust pays out 1,764.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Montanaro UK Smaller Companies pays out 31.7% of its earnings in the form of a dividend. Montanaro UK Smaller Companies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do institutionals and insiders believe in HET or MTU?

34.1% of Henderson European Trust shares are held by institutional investors. Comparatively, 78.5% of Montanaro UK Smaller Companies shares are held by institutional investors. 5.4% of Henderson European Trust shares are held by company insiders. Comparatively, 0.2% of Montanaro UK Smaller Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Is HET or MTU more profitable?

Henderson European Trust has a net margin of 95.15% compared to Montanaro UK Smaller Companies' net margin of 91.45%. Henderson European Trust's return on equity of 17.54% beat Montanaro UK Smaller Companies' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Henderson European Trust	95.15%	17.54%	10.02%
Montanaro UK Smaller Companies	91.45%	13.16%	5.77%

Does the media refer more to HET or MTU?

In the previous week, Henderson European Trust's average media sentiment score of 0.00 equaled Montanaro UK Smaller Companies'average media sentiment score.

Company	Overall Sentiment
Henderson European Trust	Neutral
Montanaro UK Smaller Companies	Neutral

Summary

Henderson European Trust beats Montanaro UK Smaller Companies on 8 of the 13 factors compared between the two stocks.