WisdomTree Investments (NASDAQ: WETF) and KKR & Co. L.P. (NYSE:KKR) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.

Risk and Volatility

WisdomTree Investments has a beta of 3.18, indicating that its share price is 218% more volatile than the S&P 500. Comparatively, KKR & Co. L.P. has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.

Institutional & Insider Ownership

91.8% of WisdomTree Investments shares are owned by institutional investors. Comparatively, 64.4% of KKR & Co. L.P. shares are owned by institutional investors. 16.6% of WisdomTree Investments shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares WisdomTree Investments and KKR & Co. L.P.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
WisdomTree Investments $219.45 million 6.94 $26.15 million $0.22 50.59
KKR & Co. L.P. $1.91 billion 4.81 $309.30 million $1.99 9.65

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

Profitability

This table compares WisdomTree Investments and KKR & Co. L.P.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WisdomTree Investments 12.98% 15.47% 12.80%
KKR & Co. L.P. 35.65% 9.39% 3.94%

Dividends

WisdomTree Investments pays an annual dividend of $0.32 per share and has a dividend yield of 2.9%. KKR & Co. L.P. pays an annual dividend of $0.68 per share and has a dividend yield of 3.5%. 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. KKR & Co. L.P. pays out 34.2% of its earnings in the form of a dividend. KKR & Co. L.P. is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for WisdomTree Investments and KKR & Co. L.P., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WisdomTree Investments 2 1 5 0 2.38
KKR & Co. L.P. 0 3 7 0 2.70

WisdomTree Investments currently has a consensus price target of $11.71, suggesting a potential upside of 5.25%. KKR & Co. L.P. has a consensus price target of $21.89, suggesting a potential upside of 14.00%. Given KKR & Co. L.P.’s stronger consensus rating and higher probable upside, analysts plainly believe KKR & Co. L.P. is more favorable than WisdomTree Investments.

Summary

KKR & Co. L.P. beats WisdomTree Investments on 9 of the 16 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 KKR & Co. L.P.

KKR & CO. L.P. (KKR) is a global investment firm that manages investments across multiple asset classes, including private equity, energy, infrastructure, real estate, credit and hedge funds. The Company’s business offers a range of investment management services to its fund investors, and provides capital markets services to its firm, its portfolio companies and third parties. The Company conducts its business with offices across the world, providing it with a global platform for sourcing transactions, raising capital and carrying out capital markets activities. The Company operates through four segments: Private Markets, Public Markets, Capital Markets and Principal Activities. It operates and reports its combined credit and hedge funds businesses through the Public Markets segment. The Capital Markets segment consists primarily of its global capital markets business. Through its Principal Activities segment, the Company manages the firm’s assets and deploys capital.

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