Siebert Financial (NASDAQ:SIEB – Get Rating) and WisdomTree (NYSE:WT – Get Rating) are both small-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.
Risk & Volatility
Siebert Financial has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500.
Insider & Institutional Ownership
6.9% of Siebert Financial shares are held by institutional investors. Comparatively, 74.3% of WisdomTree shares are held by institutional investors. 60.0% of Siebert Financial shares are held by company insiders. Comparatively, 7.8% of WisdomTree shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Siebert Financial | $50.10 million | 1.47 | -$1.99 million | ($0.07) | -32.29 |
| WisdomTree | $301.35 million | 3.24 | $50.68 million | $0.45 | 14.56 |
WisdomTree has higher revenue and earnings than Siebert Financial. Siebert Financial 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 Siebert Financial and WisdomTree’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Siebert Financial | -3.97% | -3.78% | -0.20% |
| WisdomTree | 25.30% | 12.79% | 3.81% |
Analyst Recommendations
This is a breakdown of recent recommendations for Siebert Financial and WisdomTree, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Siebert Financial | 0 | 0 | 0 | 0 | N/A |
| WisdomTree | 0 | 1 | 1 | 0 | 2.50 |
WisdomTree has a consensus target price of $6.50, suggesting a potential downside of 0.76%. Given WisdomTree’s higher possible upside, analysts plainly believe WisdomTree is more favorable than Siebert Financial.
Summary
WisdomTree beats Siebert Financial on 12 of the 13 factors compared between the two stocks.
About Siebert Financial
Siebert Financial Corp. is bank holding company, which provides brokerage and financial advisory services. It conducts the following lines of business through its wholly-owned subsidiaries: Retail Brokerage Business, Investment Advisory Services, Insurance Services, Robo-Advisory Technology Development, and Prime Brokerage Services. The company was founded in 1934 and is headquartered in New York, NY.
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.
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