WisdomTree Investments (NASDAQ: WETF) and Cohen & Steers (NYSE:CNS) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for WisdomTree Investments and Cohen & Steers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WisdomTree Investments 3 1 4 0 2.13
Cohen & Steers 1 2 1 0 2.00

WisdomTree Investments currently has a consensus target price of $10.29, indicating a potential upside of 11.98%. Cohen & Steers has a consensus target price of $44.33, indicating a potential upside of 17.81%. Given Cohen & Steers’ higher probable upside, analysts plainly believe Cohen & Steers is more favorable than WisdomTree Investments.

Insider and Institutional Ownership

92.7% of WisdomTree Investments shares are held by institutional investors. Comparatively, 45.4% of Cohen & Steers shares are held by institutional investors. 16.1% of WisdomTree Investments shares are held by insiders. Comparatively, 52.9% of Cohen & Steers shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

WisdomTree Investments has a beta of 3.14, suggesting that its share price is 214% more volatile than the S&P 500. Comparatively, Cohen & Steers has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Profitability

This table compares WisdomTree Investments and Cohen & Steers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WisdomTree Investments 13.33% 15.41% 12.78%
Cohen & Steers 26.34% 33.17% 26.42%

Earnings and Valuation

This table compares WisdomTree Investments and Cohen & Steers’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
WisdomTree Investments $212.91 million 5.81 $55.10 million $0.22 41.75
Cohen & Steers $366.32 million 4.76 $150.50 million $2.06 18.27

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

Dividends

WisdomTree Investments pays an annual dividend of $0.32 per share and has a dividend yield of 3.5%. Cohen & Steers pays an annual dividend of $1.12 per share and has a dividend yield of 3.0%. WisdomTree Investments pays out 145.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Cohen & Steers pays out 54.4% of its earnings in the form of a dividend. Cohen & Steers has increased its dividend for 5 consecutive years.

Summary

Cohen & Steers beats WisdomTree Investments on 10 of the 17 factors compared between the two stocks.

About WisdomTree Investments

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.

About Cohen & Steers

Cohen & Steers, Inc. (CNS) is a holding company. The Company is an investment manager with a focus on liquid real assets, including real estate securities, listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions. The Company serves institutional and individual investors. The Company manages three types of investment vehicles: institutional accounts, open-end funds and closed-end funds. The Company also provides services in connection with model-based strategies (MBS) accounts. In addition, the Company provides several services in connection with assets held by unit investment trusts (UITs). As a portfolio consultant to a number of UITs, the Company constructs a portfolio of securities that suit the investment objective of the UIT. The Company also provides ongoing portfolio monitoring services and provides a license to certain firms to use its name in connection with certain of their investment products.

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