Contrasting WisdomTree (NYSE:WT) and Lion Group (NASDAQ:LGHL)

Lion Group (NASDAQ:LGHL) and WisdomTree (NYSE:WT) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Insider & Institutional Ownership

0.2% of Lion Group shares are owned by institutional investors. Comparatively, 78.6% of WisdomTree shares are owned by institutional investors. 8.7% of Lion Group shares are owned by company insiders. Comparatively, 7.8% of WisdomTree shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Lion Group and WisdomTree’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lion Group	N/A	N/A	N/A
WisdomTree	14.33%	22.91%	9.81%

Earnings & Valuation

This table compares Lion Group and WisdomTree”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lion Group	$19.93 million	0.03	-$5.26 million	N/A	N/A
WisdomTree	$407.88 million	3.97	$102.55 million	$0.29	38.21

WisdomTree has higher revenue and earnings than Lion Group.

Analyst Ratings

This is a summary of current ratings and target prices for Lion Group and WisdomTree, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lion Group	0	0	0	0	0.00
WisdomTree	0	3	4	0	2.57

WisdomTree has a consensus target price of $12.25, suggesting a potential upside of 10.56%. Given WisdomTree’s stronger consensus rating and higher possible upside, analysts plainly believe WisdomTree is more favorable than Lion Group.

Volatility & Risk

Lion Group has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, WisdomTree has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Summary

WisdomTree beats Lion Group on 10 of the 12 factors compared between the two stocks.

About Lion Group

Lion Group Holding Ltd., together with its subsidiaries, operates a trading platform for corporate clients, individual traders, and retail investors primarily in the People's Republic of China and Southeast Asia. Its trading platform offers a range of products and services comprising contracts for difference trading, over-the-counter stock options trading, futures and securities brokerage, and total return swap trading services through its Lion Brokers Pro app platform. The company's trading platform allows users to trade various futures products on futures exchanges worldwide, including the Chicago Mercantile Exchange, Singapore Exchange, the Hong Kong Futures Exchange, and Eurex Exchange; stocks listed on the New York Stock Exchange, Nasdaq and Hong Kong Stock Exchange; and the People's Republic of China stocks listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange that are eligible for the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs. It markets its products mainly through search engines, social media, app stores, and third-party websites. Lion Group Holding Ltd. was founded in 2015 and is headquartered in Singapore.

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.