Contrasting MarketWise (MKTW) and Its Rivals

MarketWise (NASDAQ:MKTW) is one of 1,744 public companies in the “Capital Markets” industry, but how does it contrast to its competitors? We will compare MarketWise to related businesses based on the strength of its dividends, institutional ownership, earnings, valuation, analyst recommendations, profitability and risk.

Dividends

MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 4.7%. 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. As a group, “Capital Markets” companies pay a dividend yield of 3.2% and pay out 29.1% of their earnings in the form of a dividend. MarketWise has raised its dividend for 1 consecutive years.

Risk & Volatility

MarketWise has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, MarketWise’s competitors have a beta of 0.79, indicating that their average stock price is 21% less volatile than the S&P 500.

Insider & Institutional Ownership

23.0% of MarketWise shares are owned by institutional investors. Comparatively, 30.5% of shares of all “Capital Markets” companies are owned by institutional investors. 29.9% of MarketWise shares are owned by company insiders. Comparatively, 13.1% of shares of all “Capital Markets” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares MarketWise and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
MarketWise	$328.12 million	$5.62 million	24.40
MarketWise Competitors	$2.38 billion	$398.52 million	17.86

MarketWise’s competitors have higher revenue and earnings than MarketWise. MarketWise is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares MarketWise and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarketWise	0.72%	-0.96%	1.12%
MarketWise Competitors	318.24%	11.44%	3.69%

Analyst Recommendations

This is a summary of recent ratings for MarketWise and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarketWise	0	1	1	0	2.50
MarketWise Competitors	5560	20138	22477	642	2.37

As a group, “Capital Markets” companies have a potential upside of 26.42%. Given MarketWise’s competitors higher probable upside, analysts plainly believe MarketWise has less favorable growth aspects than its competitors.

Summary

MarketWise competitors beat MarketWise on 10 of the 15 factors compared.

MarketWise Company Profile

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.