Analyzing WisdomTree (NYSE:WT) and Waton Financial (NASDAQ:WTF)

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

Institutional and Insider Ownership

78.6% of WisdomTree shares are held by institutional investors. 9.3% of WisdomTree shares are held by company 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.

Profitability

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

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$444.57 million	3.97	$66.69 million	$0.65	18.45
Waton Financial	N/A	N/A	N/A	N/A	N/A

WisdomTree has higher revenue and earnings than Waton Financial.

Analyst Ratings

This is a breakdown of current recommendations for WisdomTree and Waton Financial, as reported by MarketBeat.com.

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

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

Summary

WisdomTree beats Waton Financial on 9 of the 9 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 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.