Contrasting UBS Group (NYSE:UBS) and MarketWise (NASDAQ:MKTW)

MarketWise (NASDAQ:MKTW) and UBS Group (NYSE:UBS) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for MarketWise and UBS Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarketWise	0	1	1	0	2.50
UBS Group	2	5	4	0	2.18

UBS Group has a consensus price target of $60.30, indicating a potential upside of 24.03%. Given UBS Group’s higher probable upside, analysts plainly believe UBS Group is more favorable than MarketWise.

Profitability

This table compares MarketWise and UBS Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarketWise	0.70%	-0.96%	1.10%
UBS Group	13.10%	10.50%	0.57%

Valuation & Earnings

This table compares MarketWise and UBS Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarketWise	$328.12 million	0.95	$5.62 million	$0.88	22.49
UBS Group	$76.12 billion	2.00	$7.77 billion	$2.94	16.54

UBS Group has higher revenue and earnings than MarketWise. UBS Group is trading at a lower price-to-earnings ratio than MarketWise, indicating that it is currently the more affordable of the two stocks.

Dividends

MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 5.1%. UBS Group pays an annual dividend of $0.36 per share and has a dividend yield of 0.7%. MarketWise pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. UBS Group pays out 12.2% of its earnings in the form of a dividend. MarketWise has increased its dividend for 1 consecutive years and UBS Group has increased its dividend for 5 consecutive years.

Volatility & Risk

MarketWise has a beta of 0.25, meaning that its share price is 75% less volatile than the S&P 500. Comparatively, UBS Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.

Institutional & Insider Ownership

23.0% of MarketWise shares are owned by institutional investors. 29.9% of MarketWise shares are owned by insiders. Comparatively, 1.0% of UBS Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

UBS Group beats MarketWise on 11 of the 17 factors compared between the two stocks.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About UBS Group

UBS Group AG provides financial advice and solutions to private, institutional, and corporate clients worldwide. It operates through five divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, Investment Bank, and Non-core and Legacy. The company offers investment advice, estate and wealth planning, investing, corporate and banking, and investment management, as well as mortgage, securities-based, and structured lending solutions. It also provides personal banking products and services, such as deposits, credit and debit cards, and online and mobile banking, as well as lending, investments, retirement, and wealth management services; and corporate and institutional solutions, including equity and debt capital markets, syndicated and structured credit, private placements, leasing, traditional financing, and transaction banking solutions for payment and cash management services, trade and export finance, and global custody solutions. In addition, the company offers equities, fixed income, hedge funds, real estate and private markets, indexed and alternative beta strategies, asset allocation and currency investment strategies, customized multi-asset solutions, advisory and fiduciary services, and multi-manager hedge fund solutions and advisory services. Further, it advises clients on strategic business opportunities and helps them raise capital to fund their activities; enables its clients to buy, sell, and finance securities on capital markets and to manage their risks and liquidity; distributes, trades in, finances, and clears cash equities and equity-linked products; structures, originates, and distributes new equity and equity-linked issues; and originates, distributes, manages risk, and provides liquidity in foreign exchange, rates, credit and precious metals. The company was formerly known as UBS AG and changed its name to UBS Group AG in December 2014. UBS Group AG was founded in 1862 and is headquartered in Zurich, Switzerland.