WisdomTree (NYSE:WT – Get Rating) and Greenhill & Co., Inc. (NYSE:GHL – Get Rating) 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, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Dividends
WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 1.9%. Greenhill & Co., Inc. pays an annual dividend of $0.40 per share and has a dividend yield of 5.4%. WisdomTree pays out 44.4% of its earnings in the form of a dividend. Greenhill & Co., Inc. pays out -571.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Greenhill & Co., Inc. has raised its dividend for 1 consecutive years. Greenhill & Co., Inc. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
WisdomTree has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Greenhill & Co., Inc. has a beta of 1.22, suggesting that its share price is 22% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| WisdomTree | 0 | 1 | 1 | 0 | 2.50 |
| Greenhill & Co., Inc. | 1 | 2 | 1 | 0 | 2.00 |
WisdomTree currently has a consensus target price of $6.00, suggesting a potential downside of 4.00%. Greenhill & Co., Inc. has a consensus target price of $11.38, suggesting a potential upside of 53.92%. Given Greenhill & Co., Inc.’s higher probable upside, analysts plainly believe Greenhill & Co., Inc. is more favorable than WisdomTree.
Institutional & Insider Ownership
74.3% of WisdomTree shares are held by institutional investors. Comparatively, 74.1% of Greenhill & Co., Inc. shares are held by institutional investors. 7.8% of WisdomTree shares are held by insiders. Comparatively, 28.1% of Greenhill & Co., Inc. shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares WisdomTree and Greenhill & Co., Inc.’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| WisdomTree | $301.35 million | 3.10 | $50.68 million | $0.27 | 23.15 |
| Greenhill & Co., Inc. | $258.45 million | 0.52 | $3.27 million | ($0.07) | -105.57 |
WisdomTree has higher revenue and earnings than Greenhill & Co., Inc.. Greenhill & Co., Inc. is trading at a lower price-to-earnings ratio than WisdomTree, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares WisdomTree and Greenhill & Co., Inc.’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| WisdomTree | 16.82% | 14.51% | 4.11% |
| Greenhill & Co., Inc. | 1.27% | 4.87% | 0.62% |
Summary
WisdomTree beats Greenhill & Co., Inc. on 11 of the 16 factors compared between the two stocks.
About WisdomTree
WisdomTree, Inc. operates as an asset management company that focuses on Exchange Traded Products (ETPs). It distributes ETPs within the asset management industry, including brokerage firms, registered investment advisors, institutional investors, private wealth managers and discount brokers. The company was founded by Jonathan Laurence Steinberg on September 19, 1985 and is headquartered in New York, NY.
About Greenhill & Co., Inc.
Greenhill & Co., Inc. is an independent investment bank, which engages in the provision of financial and strategic advice. It specializes in mergers and acquisitions, divestitures, restructurings, financings, and capital raising. The company was founded by Robert F. Greenhill in 1996 and is headquartered in New York, NY.
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