WisdomTree (NYSE:WT – Get Free Report) and TPG (NASDAQ:TPG – Get Free Report) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Profitability
This table compares WisdomTree and TPG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WisdomTree | 13.27% | 39.12% | 10.29% |
| TPG | 4.67% | 28.10% | 8.03% |
Dividends
WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. TPG pays an annual dividend of $2.36 per share and has a dividend yield of 5.1%. WisdomTree pays out 23.1% of its earnings in the form of a dividend. TPG pays out 357.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WisdomTree | 0 | 3 | 4 | 0 | 2.57 |
| TPG | 0 | 4 | 13 | 0 | 2.76 |
WisdomTree currently has a consensus price target of $23.66, suggesting a potential upside of 6.17%. TPG has a consensus price target of $63.33, suggesting a potential upside of 37.03%. Given TPG’s stronger consensus rating and higher probable upside, analysts clearly believe TPG is more favorable than WisdomTree.
Institutional & Insider Ownership
78.6% of WisdomTree shares are held by institutional investors. Comparatively, 94.0% of TPG shares are held by institutional investors. 10.1% of WisdomTree shares are held by company insiders. Comparatively, 61.4% of TPG shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares WisdomTree and TPG”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WisdomTree | $493.75 million | 6.84 | $109.13 million | $0.52 | 42.86 |
| TPG | $4.67 billion | 3.80 | $184.59 million | $0.66 | 70.03 |
TPG has higher revenue and earnings than WisdomTree. WisdomTree is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
WisdomTree has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, TPG has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500.
Summary
TPG beats WisdomTree on 11 of the 16 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 TPG
TPG Inc. operates as an alternative asset manager in the United States and internationally. The company offers investment management services to TPG Funds, limited partners, and other vehicles. It also offers monitoring services to portfolio companies; advisory, debt and equity arrangement, and underwriting and placement services; and capital structuring and other advisory services to portfolio companies. In addition, the company invests in private equity funds, real estate funds, hedge funds, and credit funds. TPG Inc. was founded in 1992 and is based in Fort Worth, Texas. The company operates as a subsidiary of TPG GP A, LLC.
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