WisdomTree (NYSE:WT) vs. BlackRock (NYSE:BLK) Financial Comparison

WisdomTree (NYSE:WT – Get Rating) and BlackRock (NYSE:BLK – Get Rating) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares WisdomTree and BlackRock’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WisdomTree	16.82%	14.51%	4.11%
BlackRock	28.97%	14.38%	4.29%

Dividends

WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 2.1%. BlackRock pays an annual dividend of $20.00 per share and has a dividend yield of 3.1%. WisdomTree pays out 44.4% of its earnings in the form of a dividend. BlackRock pays out 58.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BlackRock has raised its dividend for 14 consecutive years. BlackRock is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent ratings for WisdomTree and BlackRock, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	1	0	0	2.00
BlackRock	0	4	7	0	2.64

WisdomTree currently has a consensus target price of $6.00, indicating a potential upside of 3.45%. BlackRock has a consensus target price of $740.92, indicating a potential upside of 16.68%. Given BlackRock’s stronger consensus rating and higher probable upside, analysts plainly believe BlackRock is more favorable than WisdomTree.

Insider and Institutional Ownership

74.3% of WisdomTree shares are held by institutional investors. Comparatively, 77.7% of BlackRock shares are held by institutional investors. 7.8% of WisdomTree shares are held by insiders. Comparatively, 1.1% of BlackRock shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares WisdomTree and BlackRock’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$301.35 million	2.87	$50.68 million	$0.27	21.48
BlackRock	$17.87 billion	5.34	$5.18 billion	$33.95	18.70

BlackRock has higher revenue and earnings than WisdomTree. BlackRock is trading at a lower price-to-earnings ratio than WisdomTree, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

WisdomTree has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500. Comparatively, BlackRock has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500.

Summary

BlackRock beats WisdomTree on 12 of the 17 factors compared between the two stocks.

About WisdomTree

(Get Rating)

WisdomTree, Inc. operates as an asset management company that focuses on Exchange Traded Products (ETPs). It distributes ETPs within the asset management industry, including brokerage firms, registered investment advisors, institutional investors, private wealth managers and discount brokers. The company was founded by Jonathan Laurence Steinberg on October 1, 1988 and is headquartered in New York, NY.

About BlackRock

(Get Rating)

BlackRock, Inc. engages in providing investment management, risk management, and advisory services for institutional and retail clients worldwide. Its products include single and multi-asset class portfolios investing in equities, fixed income, alternatives, and money market instruments. The company was founded by Susan L. Wagner, Robert Steven Kapito and Laurence Douglas Fink in 1988 and is headquartered in New York, NY.