Contrasting WisdomTree (WT) & The Competition

WisdomTree (NYSE:WTGet Rating) is one of 54 publicly-traded companies in the “Security brokers & dealers” industry, but how does it contrast to its rivals? We will compare WisdomTree to related companies based on the strength of its valuation, profitability, risk, analyst recommendations, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

96.0% of WisdomTree shares are owned by institutional investors. Comparatively, 54.3% of shares of all “Security brokers & dealers” companies are owned by institutional investors. 7.8% of WisdomTree shares are owned by company insiders. Comparatively, 25.9% of shares of all “Security brokers & dealers” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for WisdomTree and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WisdomTree 0 0 0 0 N/A
WisdomTree Competitors 453 1985 2153 48 2.39

As a group, “Security brokers & dealers” companies have a potential upside of 5.19%. Given WisdomTree’s rivals higher probable upside, analysts plainly believe WisdomTree has less favorable growth aspects than its rivals.

Risk and Volatility

WisdomTree has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, WisdomTree’s rivals have a beta of 1.47, suggesting that their average stock price is 47% more volatile than the S&P 500.

Dividends

WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 2.4%. WisdomTree pays out 22.2% of its earnings in the form of a dividend. As a group, “Security brokers & dealers” companies pay a dividend yield of 2.2% and pay out 36.2% of their earnings in the form of a dividend. WisdomTree is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares WisdomTree and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WisdomTree $304.32 million $49.80 million 9.44
WisdomTree Competitors $6.83 billion $1.43 billion 18.21

WisdomTree’s rivals have higher revenue and earnings than WisdomTree. WisdomTree is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares WisdomTree and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WisdomTree 29.35% 18.11% 4.96%
WisdomTree Competitors 1.62% 16.33% 5.35%

Summary

WisdomTree rivals beat WisdomTree on 7 of the 12 factors compared.

About WisdomTree

(Get Rating)

WisdomTree, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.

Receive News & Ratings for WisdomTree Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for WisdomTree and related companies with MarketBeat.com's FREE daily email newsletter.