Financial Comparison: WisdomTree (NYSE:WT) vs. Lion Group (NASDAQ:LGHL)

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

Volatility & Risk

WisdomTree has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500. Comparatively, Lion Group has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WisdomTree	14.33%	22.91%	9.81%
Lion Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for WisdomTree and Lion Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	3	4	0	2.57
Lion Group	0	0	0	0	0.00

WisdomTree presently has a consensus price target of $12.25, suggesting a potential upside of 15.02%. Given WisdomTree’s stronger consensus rating and higher probable upside, equities analysts plainly believe WisdomTree is more favorable than Lion Group.

Valuation and Earnings

This table compares WisdomTree and Lion Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$407.88 million	3.81	$102.55 million	$0.29	36.72
Lion Group	$19.93 million	0.03	-$5.26 million	N/A	N/A

WisdomTree has higher revenue and earnings than Lion Group.

Institutional and Insider Ownership

78.6% of WisdomTree shares are owned by institutional investors. Comparatively, 0.2% of Lion Group shares are owned by institutional investors. 7.8% of WisdomTree shares are owned by insiders. Comparatively, 8.7% of Lion Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

WisdomTree beats Lion Group on 10 of the 12 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 Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.