Comparing China Finance (OTCMKTS:CHFI) and WisdomTree (NYSE:WT)

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

Volatility & Risk

China Finance has a beta of 3.24, meaning that its share price is 224% more volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Insider and Institutional Ownership

78.6% of WisdomTree shares are held by institutional investors. 7.8% of WisdomTree shares are held 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.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for China Finance and WisdomTree, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Finance	0	0	0	0	N/A
WisdomTree	0	1	5	0	2.83

WisdomTree has a consensus price target of $10.88, indicating a potential upside of 10.24%.

Valuation & Earnings

This table compares China Finance and WisdomTree’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Finance	N/A	N/A	N/A	N/A	N/A
WisdomTree	$349.04 million	4.29	$102.55 million	$0.68	14.51

WisdomTree has higher revenue and earnings than China Finance.

Profitability

This table compares China Finance and WisdomTree’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Finance	N/A	N/A	N/A
WisdomTree	29.80%	16.31%	7.63%

Summary

WisdomTree beats China Finance on 7 of the 8 factors compared between the two stocks.

About China Finance

China Finance, Inc. operates as a financial services company and provides guarantees to small and medium enterprises. It provides surety guarantees to Chinese SMEs seeking to become publicly-traded companies in the United States by being acquired by a United States reporting company in a reverse merger or merger and acquisition transaction; loan guarantees to assist SMEs and individuals in obtaining loans from Chinese banks for business operations and/or personal use; and various direct loans for business operations. The company also offers consulting services, including business and introduction services, translation services, and access to office facilities, such as conference rooms, computers, telephone, and fax lines. The company was formerly known as Value Global International Limited and changed its name to China Finance, Inc. in September 2004. The company was incorporated in 2000 and is based in New York, New York.

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.