Merriman (OTCMKTS:MERR) and Wisdom Tree Investments (NASDAQ:WETF) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
This table compares Merriman and Wisdom Tree Investments’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wisdom Tree Investments||8.00%||11.09%||4.27%|
Wisdom Tree Investments pays an annual dividend of $0.12 per share and has a dividend yield of 2.2%. Merriman does not pay a dividend. Wisdom Tree Investments pays out 37.5% of its earnings in the form of a dividend.
This is a summary of recent ratings for Merriman and Wisdom Tree Investments, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wisdom Tree Investments||2||2||0||0||1.50|
Wisdom Tree Investments has a consensus price target of $7.63, indicating a potential upside of 39.65%. Given Wisdom Tree Investments’ higher probable upside, analysts plainly believe Wisdom Tree Investments is more favorable than Merriman.
Risk & Volatility
Merriman has a beta of 3.04, suggesting that its stock price is 204% more volatile than the S&P 500. Comparatively, Wisdom Tree Investments has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500.
Insider & Institutional Ownership
73.9% of Wisdom Tree Investments shares are owned by institutional investors. 63.0% of Merriman shares are owned by insiders. Comparatively, 14.9% of Wisdom Tree 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.
Valuation & Earnings
This table compares Merriman and Wisdom Tree Investments’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Wisdom Tree Investments||$274.12 million||3.09||$36.63 million||$0.32||17.06|
Wisdom Tree Investments has higher revenue and earnings than Merriman.
Wisdom Tree Investments beats Merriman on 7 of the 10 factors compared between the two stocks.
Merriman Company Profile
Merriman Holdings, Inc., through its subsidiary, Merriman Capital, Inc., provides capital market advisory and research, corporate, and investment banking services primarily in the United States and Canada. The company's investment banking services include corporate financing services, such as initial public offerings, secondary offerings, and private placements services; and strategic advisory services comprise transaction-specific advice regarding mergers and acquisitions, divestitures, spin-offs, and privatizations, as well as general strategic advice. It also offers institutional brokerage services, including institutional sales trading and equity execution, and options execution services to institutional clients. In addition, the company executes securities transactions for money managers, mutual funds, hedge funds, insurance companies, and pension and profit-sharing plans; and provides integrated research and trading solutions, as well as capital markets advisory services. It primarily serves institutional investors and corporate clients. The company was formerly known as Merriman Curhan Ford Group, Inc. and changed its name to Merriman Holdings, Inc. in August 2010. Merriman Holdings, Inc. was founded in 1987 and is headquartered in San Francisco, California.
Wisdom Tree Investments Company Profile
WisdomTree Investments, Inc., through its subsidiaries, operates as an exchange-traded funds (ETFs) sponsor and asset manager. It offers ETFs in equities, currency, fixed income, and alternatives asset classes. The company also licenses its indexes to third parties for proprietary products, as well as offers a platform to promote the use of WisdomTree ETFs in 401(k) plans. It develops index using its fundamentally weighted index methodology. In addition, the company provides investment advisory services. The company was founded in 1985 and is based in New York, New York.
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