Analyzing Spindle (OTCMKTS:SPDL) and WisdomTree (NYSE:WT)

Spindle (OTCMKTS:SPDL) and WisdomTree (NYSE:WT) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, valuation, profitability, risk, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of current ratings and price targets for Spindle and WisdomTree, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Spindle	0	0	0	0	0.00
WisdomTree	0	3	4	1	2.75

WisdomTree has a consensus target price of $13.88, indicating a potential upside of 17.49%. Given WisdomTree’s stronger consensus rating and higher possible upside, analysts plainly believe WisdomTree is more favorable than Spindle.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Spindle	N/A	N/A	N/A
WisdomTree	21.10%	26.59%	9.51%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Spindle	N/A	N/A	N/A	N/A	N/A
WisdomTree	$427.74 million	3.89	$66.69 million	$0.65	18.17

WisdomTree has higher revenue and earnings than Spindle.

Institutional and Insider Ownership

78.6% of WisdomTree shares are owned by institutional investors. 14.6% of Spindle shares are owned by insiders. Comparatively, 9.3% of WisdomTree shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

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

About Spindle

Spindle, Inc. provides payment-processing services to merchants using its Catalyst Gateway. It also acts as an agent, independent contractor, or referral partner to broker merchants that it secures to other merchant processors for ongoing fees based on processing volume. The company serves small and medium-sized businesses. The company is based in Marco Island, Florida.

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.