Capital Financial (CPFH) versus Wisdom Tree Investments (WETF) Critical Contrast

Capital Financial (OTCMKTS:CPFH) and Wisdom Tree Investments (NASDAQ:WETF) are both small-cap finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, institutional ownership, dividends, profitability, analyst recommendations and earnings.

Profitability

This table compares Capital Financial and Wisdom Tree Investments’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Capital Financial 0.76% 20.67% 2.08%
Wisdom Tree Investments 18.05% 16.22% 7.67%

Earnings & Valuation

This table compares Capital Financial and Wisdom Tree Investments’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Capital Financial $15.57 million N/A -$130,000.00 N/A N/A
Wisdom Tree Investments $237.40 million 4.32 $27.19 million $0.24 27.92

Wisdom Tree Investments has higher revenue and earnings than Capital Financial.

Volatility & Risk

Capital Financial has a beta of 253.74, meaning that its share price is 25,274% more volatile than the S&P 500. Comparatively, Wisdom Tree Investments has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500.

Insider and Institutional Ownership

71.2% of Wisdom Tree Investments shares are owned by institutional investors. 54.0% of Capital Financial shares are owned by insiders. Comparatively, 14.5% of Wisdom Tree Investments shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Capital Financial pays an annual dividend of $50.00 per share and has a dividend yield of 4.0%. Wisdom Tree Investments pays an annual dividend of $0.12 per share and has a dividend yield of 1.8%. Wisdom Tree Investments pays out 50.0% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current recommendations and price targets for Capital Financial and Wisdom Tree Investments, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Capital Financial 0 0 0 0 N/A
Wisdom Tree Investments 2 2 3 0 2.14

Wisdom Tree Investments has a consensus price target of $10.21, suggesting a potential upside of 52.45%. Given Wisdom Tree Investments’ higher probable upside, analysts clearly believe Wisdom Tree Investments is more favorable than Capital Financial.

Summary

Wisdom Tree Investments beats Capital Financial on 7 of the 12 factors compared between the two stocks.

About Capital Financial

Capital Financial Holdings, Inc., a full-service brokerage firm, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.

About Wisdom Tree Investments

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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