Critical Contrast: WisdomTree Investments (WETF) vs. Calamos Asset Management (CLMS)
WisdomTree Investments (NASDAQ: WETF) and Calamos Asset Management (NASDAQ:CLMS) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitabiliy and institutional ownership.
Volatility & Risk
WisdomTree Investments has a beta of 3.1, indicating that its stock price is 210% more volatile than the S&P 500. Comparatively, Calamos Asset Management has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.
WisdomTree Investments pays an annual dividend of $0.32 per share and has a dividend yield of 3.2%. Calamos Asset Management pays an annual dividend of $0.60 per share and has a dividend yield of 7.2%. WisdomTree Investments pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calamos Asset Management pays out 1,200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current recommendations for WisdomTree Investments and Calamos Asset Management, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Calamos Asset Management||0||1||0||0||2.00|
WisdomTree Investments presently has a consensus target price of $10.25, suggesting a potential upside of 1.19%. Calamos Asset Management has a consensus target price of $6.75, suggesting a potential downside of 18.48%. Given WisdomTree Investments’ higher possible upside, research analysts clearly believe WisdomTree Investments is more favorable than Calamos Asset Management.
This table compares WisdomTree Investments and Calamos Asset Management’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Calamos Asset Management||58.85%||2.51%||13.51%|
Valuation and Earnings
This table compares WisdomTree Investments and Calamos Asset Management’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|WisdomTree Investments||$212.37 million||6.42||$56.91 million||$0.16||63.32|
|Calamos Asset Management||N/A||N/A||N/A||$0.05||165.60|
WisdomTree Investments has higher revenue and earnings than Calamos Asset Management. WisdomTree Investments is trading at a lower price-to-earnings ratio than Calamos Asset Management, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
95.3% of WisdomTree Investments shares are held by institutional investors. Comparatively, 56.5% of Calamos Asset Management shares are held by institutional investors. 16.1% of WisdomTree Investments shares are held by company insiders. Comparatively, 20.4% of Calamos Asset Management shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
WisdomTree Investments beats Calamos Asset Management on 8 of the 12 factors compared between the two stocks.
WisdomTree Investments Company Profile
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.
Calamos Asset Management Company Profile
Calamos Asset Management, Inc. is a holding company. The Company is the manager of Calamos Investments LLC, which owns and manages its operating companies. The Company provides investment advisory services to individuals and institutional investors through investment products that include open-end and closed-end funds (Funds), an exchange traded fund, separate accounts, offshore funds and partnerships. The subsidiaries through which the Company provides these services include Calamos Advisors LLC (CAL), an investment advisor; Calamos Financial Services LLC (CFS), a broker-dealer; Calamos Wealth Management LLC, an investment advisor, and Calamos Investments LLP, a United Kingdom-based investment advisor, and a distributor of the offshore funds and Company products.
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