Critical Survey: WisdomTree (NYSE:WT) versus Patria Investments (NYSE:PAX)

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

Valuation & Earnings

This table compares WisdomTree and Patria Investments”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$609.68 million	5.16	$109.13 million	$0.52	39.96
Patria Investments	$428.00 million	1.43	$73.40 million	$0.44	20.86

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

Analyst Recommendations

This is a summary of current ratings for WisdomTree and Patria Investments, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	3	5	0	2.62
Patria Investments	3	1	1	0	1.60

WisdomTree currently has a consensus target price of $25.72, indicating a potential upside of 23.76%. Patria Investments has a consensus target price of $12.75, indicating a potential upside of 38.89%. Given Patria Investments’ higher possible upside, analysts plainly believe Patria Investments is more favorable than WisdomTree.

Dividends

WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. Patria Investments pays an annual dividend of $0.65 per share and has a dividend yield of 7.1%. WisdomTree pays out 23.1% of its earnings in the form of a dividend. Patria Investments pays out 147.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares WisdomTree and Patria Investments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WisdomTree	13.27%	39.12%	10.29%
Patria Investments	19.91%	38.68%	15.84%

Institutional & Insider Ownership

78.6% of WisdomTree shares are owned by institutional investors. Comparatively, 96.3% of Patria Investments shares are owned by institutional investors. 10.1% of WisdomTree shares are owned by company insiders. Comparatively, 58.1% of Patria Investments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk & Volatility

WisdomTree has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Patria Investments has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

WisdomTree beats Patria Investments on 10 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 Patria Investments

Patria Investments Limited operates as a private market investment firm focused on investing in Latin America. The company offers asset management services to investors focusing on private equity funds, infrastructure development funds, co-investments funds, constructivist equity funds, and real estate and credit funds. Patria Investments Limited was founded in 1994 and is headquartered in Grand Cayman, the Cayman Islands.