Wisdom Tree Investments (NASDAQ:WETF) and Cowen (NASDAQ:COWN) are both small-cap finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, earnings, analyst recommendations and profitability.
Insider & Institutional Ownership
71.3% of Wisdom Tree Investments shares are held by institutional investors. Comparatively, 88.6% of Cowen shares are held by institutional investors. 14.5% of Wisdom Tree Investments shares are held by company insiders. Comparatively, 5.7% of Cowen shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Wisdom Tree Investments pays an annual dividend of $0.12 per share and has a dividend yield of 1.7%. Cowen does not pay a dividend. Wisdom Tree Investments pays out 50.0% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for Wisdom Tree Investments and Cowen, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wisdom Tree Investments||3||3||3||0||2.00|
Wisdom Tree Investments presently has a consensus price target of $10.78, suggesting a potential upside of 55.97%. Cowen has a consensus price target of $17.50, suggesting a potential upside of 16.43%. Given Wisdom Tree Investments’ higher probable upside, equities research analysts plainly believe Wisdom Tree Investments is more favorable than Cowen.
Valuation & Earnings
This table compares Wisdom Tree Investments and Cowen’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wisdom Tree Investments||$237.40 million||4.46||$27.19 million||$0.24||28.79|
|Cowen||$658.78 million||0.68||-$60.88 million||N/A||N/A|
Wisdom Tree Investments has higher earnings, but lower revenue than Cowen.
Volatility & Risk
Wisdom Tree Investments has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500. Comparatively, Cowen has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
This table compares Wisdom Tree Investments and Cowen’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wisdom Tree Investments||13.54%||16.31%||9.27%|
Wisdom Tree Investments beats Cowen on 11 of the 15 factors compared between the two stocks.
Wisdom Tree Investments Company Profile
WisdomTree Investments, 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.
Cowen Company Profile
Cowen Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides alternative investment management, investment banking, research, and sales and trading services for its clients. It manages separate client focused portfolio through its subsidiaries. Through its subsidiaries, the firm invests in equity and fixed income markets. It also invests in alternative investments markets through its subsidiaries. Cowen Group, Inc. was founded in 1994 and is headquartered in New York, New York with additional offices in Boston, Massachusetts, Chicago, Illinois, Cleveland, Ohio, Dallas, Texas, and San Francisco, California.
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