Analyzing WisdomTree (NYSE:WT) & Ponce Financial Group (NASDAQ:PDLB)

WisdomTree (NYSE:WT) and Ponce Financial Group (NASDAQ:PDLB) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares WisdomTree and Ponce Financial Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WisdomTree	16.25%	25.17%	9.94%
Ponce Financial Group	11.46%	7.45%	0.69%

Risk and Volatility

WisdomTree has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Ponce Financial Group has a beta of 0.82, meaning that its share price is 18% less volatile than the S&P 500.

Earnings and Valuation

This table compares WisdomTree and Ponce Financial Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$444.57 million	4.03	$66.69 million	$0.39	31.23
Ponce Financial Group	$169.85 million	2.07	$10.97 million	$0.72	20.31

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

Institutional & Insider Ownership

78.6% of WisdomTree shares are held by institutional investors. Comparatively, 64.4% of Ponce Financial Group shares are held by institutional investors. 9.3% of WisdomTree shares are held by insiders. Comparatively, 6.7% of Ponce Financial Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for WisdomTree and Ponce Financial Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	3	4	0	2.57
Ponce Financial Group	0	2	0	0	2.00

WisdomTree presently has a consensus target price of $14.08, indicating a potential upside of 15.65%. Given WisdomTree’s stronger consensus rating and higher probable upside, equities analysts plainly believe WisdomTree is more favorable than Ponce Financial Group.

Summary

WisdomTree beats Ponce Financial Group on 13 of the 14 factors compared between the two stocks.

About WisdomTree

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.

About Ponce Financial Group

Ponce Financial Group, Inc. operates as the bank holding company for Ponce Bank that provides various banking products and services. It offers various deposit products, including demand accounts, NOW/IOLA, money market, reciprocal deposits, savings accounts, and certificates of deposit to individuals, business entities, and non-profit organizations, as well as individual retirement accounts. The company also provides real estate-secured loans, which includes one-to-four family investor-owned and owner-occupied residential; multifamily residential; nonresidential property; construction and land; commercial and industrial; and business and consumer loans, as well as lines of credit. In addition, it invests in securities, which consist of U.S. Government and federal agency securities and securities issued by government-sponsored or owned enterprises, as well as corporate securities, mortgage-backed securities, and Federal Home Loan Bank stock. Ponce Financial Group, Inc. was founded in 1960 and is headquartered in Bronx, New York.