Contrasting Burford Capital (NYSE:BUR) and Prestige Wealth (NASDAQ:PWM)

Burford Capital (NYSE:BUR) and Prestige Wealth (NASDAQ:PWM) are both finance companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Burford Capital and Prestige Wealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Burford Capital	42.81%	10.61%	5.70%
Prestige Wealth	N/A	N/A	N/A

Insider and Institutional Ownership

7.7% of Prestige Wealth shares are held by institutional investors. 0.2% of Burford Capital shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Burford Capital and Prestige Wealth’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Burford Capital	$1.09 billion	N/A	$610.52 million	$1.43	9.92
Prestige Wealth	$350,000.00	21.97	-$1.04 million	N/A	N/A

Burford Capital has higher revenue and earnings than Prestige Wealth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Burford Capital and Prestige Wealth, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Burford Capital	0	0	3	0	3.00
Prestige Wealth	0	0	0	0	N/A

Burford Capital presently has a consensus price target of $20.17, suggesting a potential upside of 42.22%. Given Burford Capital’s higher probable upside, equities analysts plainly believe Burford Capital is more favorable than Prestige Wealth.

Summary

Burford Capital beats Prestige Wealth on 8 of the 9 factors compared between the two stocks.

About Burford Capital

Burford Capital Limited provides legal finance products and services worldwide. The company operates through two segments, Capital Provision, and Asset Management and Other Provision. The Capital Provision segment provides capital to the legal industry or in connection with legal matters directly and through investment in private funds; legal risk management services; lower risk legal finance business focusing on pre-settlement litigation matters with lower risk and lower expected returns; post-settlement finance; and complex strategies in which it acts as a principal and acquires assets that are mispriced. The Asset Management and Other Services segment provides services to the legal industry, including litigation insurance. Burford Capital Limited was incorporated in 2009 and is based in Saint Peter Port, Guernsey.

About Prestige Wealth

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. It assists its clients in identifying and purchasing wealth and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals, including business owners, executives, heirs of rich families, and other affluent individuals in Asia primarily in the mainland China or Hong Kong. The company was incorporated in 2018 and is based in Central, Hong Kong. Prestige Wealth Inc. is a subsidiary of Prestige Financial Holdings Group Limited.