WisdomTree Investments (NASDAQ: WETF) and Artisan Partners Asset Management (NYSE:APAM) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitabiliy.

Dividends

WisdomTree Investments pays an annual dividend of $0.32 per share and has a dividend yield of 3.1%. Artisan Partners Asset Management pays an annual dividend of $2.40 per share and has a dividend yield of 7.5%. WisdomTree Investments pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Artisan Partners Asset Management pays out 151.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Artisan Partners Asset Management is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares WisdomTree Investments and Artisan Partners Asset Management’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WisdomTree Investments $212.37 million 6.61 $56.91 million $0.16 65.19
Artisan Partners Asset Management $730.40 million 2.16 $242.89 million $1.58 20.32

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

Insider and Institutional Ownership

98.2% of Artisan Partners Asset Management shares are held by institutional investors. 16.6% of WisdomTree Investments shares are held by insiders. Comparatively, 40.3% of Artisan Partners Asset Management shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

WisdomTree Investments has a beta of 3.09, indicating that its stock price is 209% more volatile than the S&P 500. Comparatively, Artisan Partners Asset Management has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.

Profitability

This table compares WisdomTree Investments and Artisan Partners Asset Management’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WisdomTree Investments 9.83% 11.15% 9.27%
Artisan Partners Asset Management 10.47% 61.99% 7.56%

Analyst Ratings

This is a breakdown of recent ratings for WisdomTree Investments and Artisan Partners Asset Management, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WisdomTree Investments 3 0 3 0 2.00
Artisan Partners Asset Management 1 4 2 0 2.14

WisdomTree Investments currently has a consensus target price of $10.25, indicating a potential downside of 1.73%. Artisan Partners Asset Management has a consensus target price of $29.07, indicating a potential downside of 9.43%. Given WisdomTree Investments’ higher probable upside, analysts plainly believe WisdomTree Investments is more favorable than Artisan Partners Asset Management.

Summary

Artisan Partners Asset Management beats WisdomTree Investments on 10 of the 16 factors compared between the two stocks.

WisdomTree Investments Company Profile

WisdomTree Investments, Inc. is an asset management company that focuses on exchange-traded funds (ETFs). The Company’s family of ETFs includes funds that track its own indexes, funds that track third party indexes and actively managed funds. It operates as an exchange traded products sponsor and asset manager providing investment advisory services in the United States, Europe, Canada and Japan. These activities are reported in its U.S. Business segment that comprises its the United States business and Japan sales office, which primarily engages in selling its United States listed ETFs to Japanese institutions, and International Business segment, that comprises its European business and Canadian business. Its United States listed products include International Hedged Equity ETFs, Equity ETFs, Fixed Income ETFs, Currency ETFs, Alternative Strategy ETFs and Commodity ETFs. Its portfolio of Non-the United States listed products include WisdomTree UCITS ETFs, Boost ETPs and Canadian ETFs.

Artisan Partners Asset Management Company Profile

Artisan Partners Asset Management Inc. is an investment management company. The Company provides a range of the United States, non-United States and global investment strategies, each of which is managed by one of its investment teams. The Company provides investment management services to separate accounts, mutual funds and other pooled investment vehicles. The Company offers its investment management services primarily to institutions and through intermediaries that operate with institutional-like decision-making processes and have long-term investment horizons. The Company provides clients with multiple equity investment strategies spanning market capitalization segments and investing styles in both the United States and non-United States markets. The Company also offers one fixed income strategy, the Artisan High Income strategy. Each strategy is managed by one of the investment teams.

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