WisdomTree (NYSE:WT) and Orix Corp Ads (NYSE:IX) Critical Comparison

Orix Corp Ads (NYSE:IX) and WisdomTree (NYSE:WT) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Earnings and Valuation

This table compares Orix Corp Ads and WisdomTree”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orix Corp Ads	$18.88 billion	2.21	$2.32 billion	$2.79	13.12
WisdomTree	$493.75 million	4.65	$109.13 million	$0.75	21.77

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Orix Corp Ads and WisdomTree, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orix Corp Ads	0	0	1	0	3.00
WisdomTree	0	3	4	0	2.57

WisdomTree has a consensus price target of $17.65, indicating a potential upside of 8.08%. Given WisdomTree’s higher possible upside, analysts clearly believe WisdomTree is more favorable than Orix Corp Ads.

Dividends

Orix Corp Ads pays an annual dividend of $0.91 per share and has a dividend yield of 2.5%. WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 0.7%. Orix Corp Ads pays out 32.6% of its earnings in the form of a dividend. WisdomTree pays out 16.0% 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.

Profitability

This table compares Orix Corp Ads and WisdomTree’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orix Corp Ads	15.04%	10.69%	2.70%
WisdomTree	22.10%	30.24%	9.87%

Volatility & Risk

Orix Corp Ads has a beta of 0.74, indicating that its share price is 26% less volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Institutional & Insider Ownership

1.7% of Orix Corp Ads shares are owned by institutional investors. Comparatively, 78.6% of WisdomTree shares are owned by institutional investors. 0.1% of Orix Corp Ads shares are owned by company insiders. Comparatively, 9.3% of WisdomTree shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

WisdomTree beats Orix Corp Ads on 11 of the 16 factors compared between the two stocks.

About Orix Corp Ads

ORIX Corporation provides diversified financial services in Japan, the United States, Asia, Europe, Australasia, and the Middle East. The company's Corporate Financial Services and Maintenance Leasing segment is involved in the finance and fee; leasing and rental of automobiles, electronic measuring instruments, and ICT-related equipment businesses; and provision of life insurance and environment and energy-related products and services. Its Real Estate segment develops, rents, and manages real estate properties; operates facilities; real estate asset management; manages residential condominiums and office building; and provides construction contracting, real estate brokerage, and real estate investment advisory services, as well as operates hotels and Japanese inns. The company's PE Investment and Concession segment engages in the private equity (PE) investment and concession businesses. Its Environment and Energy segment provides renewable energy; ESCO; retails electric power; sells solar panels and battery electricity storage systems; and recycling and waste management services, as well as generates solar power. The company's Insurance segment sells life insurance products through agents, banks, and other financial institutions, as well as face-to-face and online. Its Banking and Credit segment provides banking and consumer finance services. The company's Aircraft and Ships segment engages in the aircraft leasing and management, and ship-related finance and investment businesses. Its ORIX USA segment offers finance, investment, and asset management services. The company's ORIX Europe segment provides equity and fixed income asset management services. Its Asia and Australia segment offers finance and investment businesses. The company was formerly known as Orient Leasing Co., Ltd. and changed its name to ORIX Corporation in 1989. ORIX Corporation was incorporated in 1950 and is headquartered in Tokyo, Japan.

About WisdomTree

WisdomTree, 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.