WisdomTree (NYSE:WT) and Waton Financial (NASDAQ:WTF) Head-To-Head Analysis

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Waton Financial	$7.45 million	33.28	N/A	N/A	N/A
WisdomTree	$427.74 million	4.13	$66.69 million	$0.39	30.76

WisdomTree has higher revenue and earnings than Waton Financial.

Analyst Ratings

This is a summary of current ratings and recommmendations for Waton Financial and WisdomTree, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Waton Financial	1	0	0	0	1.00
WisdomTree	0	3	4	0	2.57

WisdomTree has a consensus target price of $14.08, suggesting a potential upside of 17.41%. Given WisdomTree’s stronger consensus rating and higher probable upside, analysts plainly believe WisdomTree is more favorable than Waton Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Waton Financial	N/A	N/A	N/A
WisdomTree	16.25%	25.17%	9.94%

Institutional and Insider Ownership

78.6% of WisdomTree shares are held by institutional investors. 9.3% of WisdomTree shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

WisdomTree beats Waton Financial on 9 of the 10 factors compared between the two stocks.

About Waton Financial

Waton Financial Ltd. is a holding company, which engages in the provision of securities brokerage and financial technology services. It is also involved in software licensing and related support services including the licensing of trading platform app, upgrades and enhancements, maintenance, and other related services to financial institutions. The company was founded on June 25, 2010 and is headquartered in Hong Kong.

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.