MarketWise (NASDAQ:MKTW – Get Free Report) and TPG (NASDAQ:TPG – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
Valuation and Earnings
This table compares MarketWise and TPG”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MarketWise | $328.12 million | 1.08 | $5.62 million | $0.83 | 27.08 |
| TPG | $4.67 billion | 4.02 | $184.59 million | $0.87 | 56.14 |
TPG has higher revenue and earnings than MarketWise. MarketWise is trading at a lower price-to-earnings ratio than TPG, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for MarketWise and TPG, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MarketWise | 0 | 1 | 1 | 0 | 2.50 |
| TPG | 0 | 4 | 11 | 0 | 2.73 |
TPG has a consensus price target of $61.00, indicating a potential upside of 24.90%. Given TPG’s stronger consensus rating and higher possible upside, analysts plainly believe TPG is more favorable than MarketWise.
Profitability
This table compares MarketWise and TPG’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% |
| TPG | 5.32% | 29.05% | 8.15% |
Institutional & Insider Ownership
23.0% of MarketWise shares are held by institutional investors. Comparatively, 94.0% of TPG shares are held by institutional investors. 29.9% of MarketWise shares are held by company insiders. Comparatively, 61.4% of TPG shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
MarketWise has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, TPG has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
Dividends
MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 4.4%. TPG pays an annual dividend of $2.36 per share and has a dividend yield of 4.8%. MarketWise pays out 120.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TPG pays out 271.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. MarketWise has increased its dividend for 1 consecutive years.
Summary
TPG beats MarketWise on 15 of the 17 factors compared between the two stocks.
About MarketWise
MarketWise, Inc. is a digital subscription-based financial research and education company. It provides individual investors with investment research, market analysis, trading ideas, educational content and portfolio-management tools designed to support self-directed investing. The company operates a portfolio of financial media and research brands, including Stansberry Research, InvestorPlace, Empire Financial Research, Chaikin Analytics and TradeSmith. Its offerings generally include newsletters, analyst research, market commentary, trading and investing courses, software tools, and premium subscription services covering stocks, options, cryptocurrencies and other investment topics.
About TPG
TPG Inc. is a global alternative asset management firm that invests across private equity, growth equity, impact investing, real estate, credit and other investment strategies. The company manages investment funds and related products for institutional and individual investors. Founded in 1992 as Texas Pacific Group, TPG has expanded its investment platforms over time, including through its acquisition of Angelo Gordon, which added to its credit and real estate capabilities. The firm invests in businesses and assets across multiple industries and geographies, with operations and investment teams serving markets around the world.
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