Comparing WisdomTree (NYSE:WT) and TPG (NASDAQ:TPG)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TPG	4.67%	28.10%	8.03%
WisdomTree	13.27%	39.12%	10.29%

Volatility and Risk

TPG has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for TPG and WisdomTree, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	4	13	0	2.76
WisdomTree	0	4	3	0	2.43

TPG presently has a consensus price target of $63.33, indicating a potential upside of 31.84%. WisdomTree has a consensus price target of $23.66, indicating a potential downside of 1.99%. Given TPG’s stronger consensus rating and higher possible upside, equities analysts plainly believe TPG is more favorable than WisdomTree.

Institutional & Insider Ownership

94.0% of TPG shares are held by institutional investors. Comparatively, 78.6% of WisdomTree shares are held by institutional investors. 61.4% of TPG shares are held by insiders. Comparatively, 10.1% of WisdomTree shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

TPG pays an annual dividend of $2.36 per share and has a dividend yield of 4.9%. WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 0.5%. 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. WisdomTree pays out 23.1% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares TPG and WisdomTree”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$4.67 billion	3.95	$184.59 million	$0.66	72.78
WisdomTree	$493.75 million	7.41	$109.13 million	$0.52	46.42

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.

Summary

TPG beats WisdomTree on 11 of the 16 factors compared between the two stocks.

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.

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.