Prestige Wealth (NASDAQ:AURE – Get Free Report) and Wealthfront (NASDAQ:WLTH – Get Free Report) are both small-cap financial services companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.
Institutional and Insider Ownership
7.7% of Prestige Wealth shares are held by institutional investors. 27.4% of Wealthfront shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Prestige Wealth and Wealthfront, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Prestige Wealth | 1 | 0 | 0 | 0 | 1.00 |
| Wealthfront | 1 | 4 | 4 | 0 | 2.33 |
Profitability
This table compares Prestige Wealth and Wealthfront’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Prestige Wealth | N/A | N/A | N/A |
| Wealthfront | N/A | N/A | N/A |
Valuation and Earnings
This table compares Prestige Wealth and Wealthfront”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Prestige Wealth | $1.79 million | 42.91 | -$22.73 million | ($0.90) | -2.47 |
| Wealthfront | $364.99 million | 3.56 | -$42.07 million | N/A | N/A |
Prestige Wealth has higher earnings, but lower revenue than Wealthfront.
Summary
Wealthfront beats Prestige Wealth on 5 of the 8 factors compared between the two stocks.
About Prestige Wealth
Through our subsidiaries, we are a wealth management and asset management services provider based in Hong Kong, with the majority of our subsidiaries’ operations in Hong Kong. Our subsidiaries assist their clients in identifying and purchasing well matched wealth management products and global asset management products. Our subsidiaries’ clients for both wealth management and asset management services are primarily high net worth and ultra-high net worth individuals in Asia, and a majority of our subsidiaries’ clients reside in mainland China or Hong Kong. High net worth individuals and ultra-high net worth individuals refer to people who own individual investable assets, including financial assets and investment property, with total value over $1.5 million or over $4.5 million, respectively. In the fiscal year ended September 30, 2020, our subsidiaries’ wealth management services and asset management services contributed to approximately 68.64% and 31.36% of our total revenue, respectively. In the fiscal year ended September 30, 2021, our subsidiaries’ wealth management services and asset management services contributed to approximately 0.07% and 99.93% of our total revenue, respectively. In the six months ended March 31, 2022, our subsidiaries’ wealth management services and asset management services contributed to approximately 98.64% and 1.36% of our total revenue, respectively. • Wealth management services. Our subsidiaries work with licensed product brokers licensed in Hong Kong or in the U.S., who are primarily insurance brokers and distribute wealth management products, which currently consist only of insurance products, and assist them in customizing wealth management investment portfolios for our clients. Since late 2021, our subsidiaries started providing wealth management services in the U.S. Our subsidiaries also provide customized value-added services to their clients, including personal assistant services in Hong Kong, referrals to suitable wealth planning and inheritance related professionals such as trust lawyers and tax accountants, and referrals to renowned high end medical and education resources. Our subsidiaries do not charge their clients fees for these value-added services. In addition to insurance products, we intend to expand the network of product brokers our subsidiaries work with to provide clients with access to other types of wealth management products. • Asset management services. Our wholly-owned subsidiary, PRESTIGE ASSET INTERNATIONAL INC. (“PAI”) and its subsidiaries provide asset management services to their clients acting as investment advisors and fund managers. Currently, our subsidiaries manage a fund of funds (“FOF”), Prestige Global Allocation Fund (“PGA”). In addition to managing PGA, our subsidiaries also provide discretionary account management services to their clients. Previously, our subsidiaries managed a fund Prestige Capital Markets Fund I L.P. (“PCM1”), and our subsidiaries also provided asset management related advisory services. For our subsidiaries’ asset management services, they charge investors certain fees for managing and advising a fund, including subscription fees, performance fees and management fees. Our subsidiaries mainly provide their wealth management and asset management services to high net worth and ultra-high net worth individuals or institutions owned by them in Asia, including business owners, executives, heirs of rich families and other affluent individuals. Word-of-mouth is currently one of the most effective marketing tools for our subsidiaries’ business and a majority of our subsidiaries’ new clients have come through referrals from existing clients. Our subsidiaries are also actively expanding their client referral network by actively maintaining client relationship, seeking referrals from existing clients, and expanding their business network. In mid-2017, our subsidiaries launched their wealth management operation providing referral services to clients in connection with the clients’ purchase of wealth management products from third-party brokers. For wealth management services, we generated revenues through a limited number of product brokers. For the years ended September 30, 2020 and 2021, we generated 100% of wealth management services revenue through a Hong Kong-based insurance broker. For the six months ended March 31, 2022, we generated approximately 99.99% of wealth management services revenue through a U.S.-based insurance broker. We intend to further develop our subsidiaries’ wealth management business in the future by engaging with more product brokers that offer additional types of wealth management products. In early 2017, our subsidiaries started to provide asset management services to their clients. In late 2018, our subsidiaries began providing asset management related advisory services as a type of their asset management services at the request of certain clients. In late 2020, our subsidiaries started to provide discretionary account management services to their clients as a type of our asset management services. For the fiscal years ended September 30, 2020 and 2021 and the six months ended March 31, 2022, we generated the majority of asset management services revenue from our advisory service clients and asset management fund. We generated approximately 89.70% of asset management services revenue from one advisory service client for the fiscal year ended September 30, 2020, approximately 60.32% of that from one asset management fund for the fiscal year ended September 30, 2021, and 100% of that from one asset management fund for the six months ended March 31, 2022. In the future, our subsidiaries will continue to provide their clients with existing asset management services, and develop or introduce more highly desirable product and service opportunities that meet the ever-evolving standards of our subsidiaries’ clients. For the years ended September 30, 2020 and 2021 and the six months ended March 31, 2022, our subsidiaries provided wealth management services to 13, three and two clients, respectively, and we generated revenue from wealth management services in the amount of $1,758,331, $1,833 and $1,765,325, respectively. Our subsidiaries’ wealth management clients decreased in number from the fiscal year ended September 30, 2020 to the fiscal year ended September 30, 2021 because as affected by COVID-19 related travel restrictions and related mandatory quarantine measures, our subsidiaries’ mainland China resident clients were unable to travel to Hong Kong to complete procedures required for purchasing insurance products, and correspondingly, our revenue generated from wealth management services decreased from the fiscal year ended September 30, 2020 to the fiscal year ended September 30, 2021. However, our wealth management revenue significantly increased for the six months ended March 31, 2022 because through our subsidiaries, we worked with a licensed product broker in the U.S. and provided wealth management services to a client in the U.S. For the years ended September 30, 2020 and 2021 and the six months ended March 31, 2022, our subsidiaries provided asset management services to six, 21 and five clients, respectively, and generated revenue from asset management services in the amount of $803,469, $2,790,346 and $24,356, respectively. Among the 21 clients our subsidiaries provided asset management services to in the fiscal year ended September 30, 2021, 15 clients received short-term asset management services that lasted for less than one fiscal year, such as our discretionary account management services and PCM1. For our subsidiaries’ asset management services, as of September 30, 2020 and 2021 and March 31, 2022, three, five and five clients had their assets under our subsidiaries’ management, respectively. The assets under management (“AUM”) of PGA was $5,081,020, $4,589,962 and $5,023,496, as of September 30, 2020 and 2021, and March 31, 2022, respectively. The AUM of our subsidiaries’ discretionary account management was $125,917 as of March 31, 2022. With respect to our subsidiaries’ asset management related advisory services, our subsidiaries provided services to two, one, and zero client(s), for the years ended September 30, 2020 and 2021 and the six months ended March 31, 2022, respectively. Our subsidiaries actively maintain their relationships with their clients, and we believe that the quality of our subsidiaries’ services, our client-centric culture, and our subsidiaries’ value-added services have contributed to a generally steady client base. From March 31, 2022 to the date of this prospectus, our subsidiaries do not have any new client for either wealth management services or asset management services. As of the date of this prospectus, five clients have their assets under our subsidiaries’ management. Among them, two clients have their assets in our subsidiaries’ PGA fund, and three clients have their assets under our subsidiaries’ discretionary account management. Our revenue increased by approximately 8.99% from approximately $2.56 million in the fiscal year ended September 30, 2020 to approximately $2.79 million in the fiscal year ended September 30, 2021, and decreased by approximately 31.30% from approximately $2.61 million in the six months ended March 31, 2021 to approximately $1.79 million in the six months ended March 31, 2022. Our net income for the fiscal years ended September 30, 2020 and 2021 and the six months ended March 31, 2022 were approximately $1.73 million, $1.91 million and $1.31 million, respectively. For the six months ended March 31, 2022, wealth management services and asset management services contributed to approximately 98.64% and 1.36% of our total revenue, respectively. Approximately 99.99% of revenues from wealth management services for the six months ended March 31, 2022, or approximately $1.77 million, was generated from a client in the U.S. The client purchased three life insurance policies with an average premium of more than approximately $9.60 million for each policy. On average, we generated approximately 6.13% of the total premiums of these three life insurance policies as referral fees. For our revenue for the fiscal year ended September 30, 2021, wealth management services and asset management services contributed to approximately 0.07% and 99.93% of our revenue, respectively. Our subsidiaries utilized short-term initial public offering (“IPO”) investment strategy in their asset management services. The ultimate investments of PCM1, a fund our subsidiaries managed, and the discretionary accounts our subsidiaries managed were the IPO shares of certain target companies on the main board of the Hong Kong Stock Exchange. Among them, PCM1 invested in an underlying fund that participated in the IPO of a company on the Hong Kong Stock Exchange, whereas the discretionary accounts our subsidiaries managed invested by directly purchasing the IPO shares of and participating in the IPOs of certain companies on the main board of the Hong Kong Stock Exchange. Our subsidiaries’ asset management services involving short-term IPO investment strategy contributed to a total of approximately 82.34% of our total revenue for the fiscal year ended September 30, 2021, among which discretionary account management services involving this strategy contributed to approximately 22.06% of our total revenue, and PCM1, a fund our subsidiaries managed that also adopted short-term IPO investment strategy, contributed to approximately 60.28% of our total revenue. Investments involving short-term IPO investment strategy could be subject to substantial risks. We did not utilize short-term IPO investment strategy in the fiscal year ended September 30, 2020 or in the six months ended March 31, 2022. Our principal executive offices are located at Suite 5102, 51/F, Cheung Kong Center, 2 Queen’s Road Central, Hong Kong. Our registered office is located at Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman, KY11111, Cayman Islands, and its phone number is +1 345 949 1040. Our agent for service of process in the United States is Cogency Global Inc., is located in New York, NY.
About Wealthfront
We’re a different kind of FinTech. We are a technology company that built a financial solutions platform for “digital natives,” defined as those born after 1980 (i.e., Millennials, Gen Z, and later generations). Our platform is designed to address the needs of the wealth builders within these generations. We have differentiated, trusted relationships with our clients due to our unique and fundamentally aligned incentives. Simply put, we succeed because our clients succeed. We were among the first digital-only financial solutions platforms(1), and we pioneered using automation to offer low-cost diversified portfolios. We built our platform using software to deliver our solutions quickly, conveniently, and at low cost. These principles align with the preferences of digital natives, who use digital platforms for the vast majority of their everyday services ranging from entertainment and commerce to food delivery and ride sharing. Our technology-driven financial solutions help clients turn savings into long-term wealth. Our broad suite of products, including cash management, investment advisory, borrowing and lending, and financial planning solutions, address the diverse financial needs of our clients regardless of the economic environment. We believe the opportunity we are pursuing is unique and massive. Digital natives are entering the prime wealth accumulation phase of their lives and are expected to be the wealthiest generations ever. According to a study we commissioned from Oxford Economics, the wealth of digital natives is estimated to grow at an annual rate of 11.3% from $12 trillion in 2022 to $140 trillion in 2045. During the Global Financial Crisis (“GFC”), digital natives lost trust in traditional financial institutions which they blamed for high unemployment and an economic downturn. Meanwhile, they embraced and became increasingly empowered by technology through intuitive, mobile, and software-focused experiences. This backdrop created an opportunity for Wealthfront to disrupt traditional brick-and-mortar, in-person, and high-cost financial product experiences. Our clients are primarily digital-native high earners who prioritize savings and wealth accumulation. Since inception, our platform assets have grown in-line with the wealth accumulation of these generations. As of July 31, 2025, we had over 1.3 million funded clients, and $88.2 billion in platform assets. Digital natives typically have large liquid savings with long time horizons ahead, and they are undeterred by corrections and bear markets. Clients typically come to Wealthfront seeking a specific solution and, as our trust-based relationship deepens, we gain insights into their evolving needs, in many cases through the data associated with third-party financial accounts they link to our financial planning software. Client engagement and feedback drive our product-led growth strategy and business flywheel. This continuous feedback loop constantly optimizes our platform for our clients’ evolving needs, fueling our historical organic growth. Over the past two fiscal years, over 50% of new clients were referred by existing clients and our annual client retention rate was approximately 95% for each of fiscal 2024 and fiscal 2025. We are led by a technically proficient management team, including our CEO, who served as our CTO for many years. We built our products on a proprietary technology infrastructure. We have a strong, somewhat contrarian preference for building over buying or partnering. This allows us to automate to an extent not seen in the industry. Automation not only allows us to launch and iterate products faster, lower costs to clients, and offer a better overall client experience, but also lowers our cost of support. Automation is a core principle underpinning everything we do—the way we design our products, organize our company, and foster employee culture. Our business model is designed to optimize for our clients’ success. Our focus on delivering fully automated services results in being one of the lowest cost producers in each category in which we participate. We share the savings directly with our clients, significantly reducing their fees, improving their financial outcomes, and enhancing their trust in us. This trust leads clients to add more money to our platform as they save, adopt new products and refer their friends. Our cost structure and our organic growth are business model advantages, and have enabled us to achieve our historic profitability, which allows us to further invest in our platform. Reinvesting in our platform drives further automation and powers the continuous cycle of our flywheel. We seek to make money with, not from, our clients along their wealth accumulation journey. The alignment of incentives helps retain clients and drives more predictability in our business, as our clients trust us with an increasing amount of their wealth and adopt more than one product. Since inception, we have experienced significant growth. We rapidly scaled our number of clients and platform assets, all while sustaining high retention rates. Our platform assets increased from $57.6 billion as of January 31, 2024 to $80.2 billion as of January 31, 2025, representing 39% year-over-year growth, and from $71.4 billion as of July 31, 2024 to $88.2 billion as of July 31, 2025, representing 24% year-over-year growth. (1) Based on multiple industry sources, we are commonly cited as being one of the first platforms to provide algorithmic investment services. — We were incorporated in the State of Delaware in January 2007 as “MAJ I, Inc.” We changed our name to “Kaching Group Inc.” in January 2008 and then to “Wealthfront Inc.” in October 2010. In August 2018, we changed our name to “Wealthfront Corporation.” Wealthfront Corporation is the parent company of a number of operating subsidiaries, including (i) Wealthfront Brokerage LLC, a Delaware limited liability company, which is a licensed broker-dealer that primarily provides brokerage services and related products, (ii) Wealthfront Advisers LLC, a Delaware limited liability company, which is an SEC-registered investment adviser that primarily provides investment management and advisory services, and (iii) Wealthfront Strategies LLC, a Delaware limited liability company, which is an SEC-registered investment adviser. Our principal executive offices are located in Palo Alto, California.
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