Reviewing Wright Investors Service (WISH) and The Carlyle Group (CG)

Wright Investors Service (OTCMKTS:WISH) and The Carlyle Group (NASDAQ:CG) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Valuation & Earnings

This table compares Wright Investors Service and The Carlyle Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wright Investors Service $5.41 million 1.85 -$1.29 million N/A N/A
The Carlyle Group $3.68 billion 0.51 $244.10 million $3.47 5.06

The Carlyle Group has higher revenue and earnings than Wright Investors Service.

Insider and Institutional Ownership

4.2% of Wright Investors Service shares are owned by institutional investors. Comparatively, 42.7% of The Carlyle Group shares are owned by institutional investors. 30.5% of Wright Investors Service shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Wright Investors Service and The Carlyle Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Investors Service -23.91% -17.81% -16.20%
The Carlyle Group 5.47% 26.30% 5.39%

Volatility & Risk

Wright Investors Service has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, The Carlyle Group has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Wright Investors Service and The Carlyle Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Investors Service 0 0 0 0 N/A
The Carlyle Group 0 2 8 0 2.80

The Carlyle Group has a consensus price target of $26.25, suggesting a potential upside of 49.49%. Given The Carlyle Group’s higher probable upside, analysts clearly believe The Carlyle Group is more favorable than Wright Investors Service.

Dividends

The Carlyle Group pays an annual dividend of $1.68 per share and has a dividend yield of 9.6%. Wright Investors Service does not pay a dividend. The Carlyle Group pays out 48.4% of its earnings in the form of a dividend.

Summary

The Carlyle Group beats Wright Investors Service on 10 of the 13 factors compared between the two stocks.

Wright Investors Service Company Profile

Wright Investors' Service Holdings, Inc., through its wholly-owned subsidiary, The Winthrop Corporation, provides investment management, financial advisory, and investment research services to large and small investors in the United States. The company offers investment management products and services, including equity, fixed income, and balanced portfolios for various plan types, such as defined benefit, annuity, self-directed and 401(k), health and welfare, and education and training plans to sponsors, trade unions, endowments, corporations, state and local governments, municipalities, and foundations. It also manages various accounts, such as discretionary investment accounts, individual retirement accounts, and 401k plans, as well as accounts for non-corporate fiduciaries comprising trustees, executors, guardians, personal representatives, attorneys, and other professionals to support high net worth investors and other individual investors; and provides a family of mutual funds. In addition, the company offers research products for institutional investors that include Wright Reports, a research report providing approximately 10 years of fundamental information for approximately 35,000 companies in 63 countries; and One-Page Report, a company specific single page report with approximately 10 years of history that contains valuation ratios, earnings, and dividends. Its research products also comprise Wright Industry Averages Reports, which are consolidated reports prepared on a Global and Regional basis for various industries; corporateInformation.com, an online commercial Website that offers subscription access to the universe of Wright Reports; Wright Fiduciary Lists; and Wright FIRST Investment Research Service, a financial management service to portfolio, trust, and investment professionals. The company is headquartered in Greenwich, Connecticut.

The Carlyle Group Company Profile

The Carlyle Group L.P. is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led/ Leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, global distressed and corporate opportunities, small and middle market, equity private placements, consolidations and buildups, senior debt, mezzanine and leveraged finance, and venture and growth capital financings, seed/startup, early venture, emerging growth, turnaround, mid venture, late venture, PIPES. The firm invests across four segments which include Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. The firm typically invests in agribusiness, ecological sector, fintech, airports, parking, Plastics, Rubber, diversified natural resources, minerals, farming, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, software enabled services, semiconductors, communications infrastructure, financial technology, utilities, gaming, systems and related supply chain, electronic systems, systems, oil and gas, processing facilities, power generation assets, technology, systems, real estate, financial services, transportation, business services, telecommunications, media, and logistics sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, domestic consumption, consumer services, personal care products, direct marketing, and education. Within aerospace, defense, business services, and government services sectors, it seeks to invest in defense electronics, manufacturing and services, government contracting and services, information technology, distribution companies. In telecommunication and media sectors, it invests in cable TV, directories, publishing, entertainment and content delivery services, wireless infrastructure/services, fixed line networks, satellite services, broadband and Internet, and infrastructure. Within real estate, the firm invests in office, hotel, industrial, retail, for sale residential, student housing, hospitality, multifamily residential, homebuilding and building products, and senior living sectors. The firm seeks to make investments in growing business including those with overleveraged balance sheets. The firm seeks to hold its investments for four to six years. In the healthcare sector, it invests in healthcare services, outsourcing services, companies running clinical trials for pharmaceutical companies, managed care, pharmaceuticals, pharmaceutical related services, healthcare IT, medical, products, and devices. It seeks to invest in companies based in Sub-Saharan focusing on Ghana, Kenya, Mozambique, Botswana, Nigeria, Uganda, West Africa, North Africa and South Africa focusing on Tanzania and Zambia; Asia focusing on Pakistan, India, South East Asia, Indonesia, Philippines, Vietnam, Korea, and Japan; Australia; New Zealand; Europe focusing on France, Italy, Denmark, United Kingdom, Germany, Austria, Belgium, Finland, Iceland, Ireland, Netherlands, Norway, Portugal, Spain, Benelux , Sweden, Switzerland, Hungary, Poland, and Russia; Middle East focusing on Bahrain, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Turkey, and UAE; North America focusing on United States which further invest in Southeastern United States, Texas, Boston, San Francisco Bay Area and Pacific Northwest; Asia Pacific; Soviet Union, Central-Eastern Europe, and Israel; Nordic region; and South America focusing on Mexico, Argentina, Brazil, Chile, and Peru. The firm seeks to invest in food, financial, and healthcare industries in Western China. In the real estate sector, the firm seeks to invest in various locations across Europe focusing on France and Central Europe, United States, Asia focusing on China, and Latin America. It typically invests between $5 million and $50 million for venture investments and between $20 million and $1 billion for buyouts in companies with enterprise value of between $37.15 million and $1000 million and sales value of $10 million and $500 million. It seeks to invest in companies with market capitalization greater than $50 million. It prefers to take a majority stake. It typically holds its investments for three to five years. Within automotive and transportation sectors, the firm seeks to hold its investments in for four to six years. While investing in Japan, it does not invest in companies with more than 1,000 employees and prefers companies' worth between $100 million and $150 million. The firm originates, structures, and acts as lead equity investor in the transactions. The Carlyle Group L.P. was founded in 1987 and is based in Washington, District of Columbia with additional offices in 20 countries across six continents (North America, South America, Asia, Australia, Europe, and Africa).

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