Financial Contrast: Eaton Vance (EV) and WisdomTree Investments (WETF)

Eaton Vance (NYSE: EV) and WisdomTree Investments (NASDAQ:WETF) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.

Earnings & Valuation

This table compares Eaton Vance and WisdomTree Investments’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eaton Vance $1.53 billion 4.67 $282.13 million $2.42 25.01
WisdomTree Investments $219.45 million 7.98 $26.15 million $0.22 58.14

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

Volatility & Risk

Eaton Vance has a beta of 1.9, indicating that its stock price is 90% more volatile than the S&P 500. Comparatively, WisdomTree Investments has a beta of 3.16, indicating that its stock price is 216% more volatile than the S&P 500.

Dividends

Eaton Vance pays an annual dividend of $1.24 per share and has a dividend yield of 2.0%. WisdomTree Investments pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. Eaton Vance pays out 51.2% of its earnings in the form of a dividend. 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. Eaton Vance has increased its dividend for 37 consecutive years.

Institutional and Insider Ownership

68.7% of Eaton Vance shares are owned by institutional investors. Comparatively, 89.4% of WisdomTree Investments shares are owned by institutional investors. 16.6% of WisdomTree Investments shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Eaton Vance and WisdomTree Investments, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eaton Vance 0 5 2 0 2.29
WisdomTree Investments 1 1 4 0 2.50

Eaton Vance presently has a consensus target price of $51.36, indicating a potential downside of 15.14%. WisdomTree Investments has a consensus target price of $12.17, indicating a potential downside of 4.87%. Given WisdomTree Investments’ stronger consensus rating and higher probable upside, analysts plainly believe WisdomTree Investments is more favorable than Eaton Vance.

Profitability

This table compares Eaton Vance and WisdomTree Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eaton Vance 18.45% 33.45% 13.84%
WisdomTree Investments 12.98% 15.47% 12.80%

Summary

WisdomTree Investments beats Eaton Vance on 9 of the 17 factors compared between the two stocks.

About Eaton Vance

Eaton Vance Corp. is engaged in the business of managing investment funds and providing investment management and advisory services to high-net-worth individuals and institutions. The Company operates as an investment advisor to funds and separate accounts. The Company, through its subsidiaries and other affiliates, manages active equity, income and alternative strategies across a range of investment styles and asset classes, including the United States and global equities, floating-rate bank loans, municipal bonds, global income, high-yield and investment grade bonds. Through its subsidiary, the Company also manages a range of engineered alpha strategies, including systematic equity, systematic alternatives and managed options strategies. The Company’s open-end fund lineup includes tax-managed equity funds, and non-tax-managed equity and multi-asset funds. The Company’s family of closed-end funds includes municipal bond, domestic and global equity, and bank loan.

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.

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