Financial Review: BlackRock Multi-Sector Income Trust (NYSE:BIT) and WisdomTree (NYSE:WT)

WisdomTree (NYSE:WT) and BlackRock Multi-Sector Income Trust (NYSE:BIT) are both finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.

Institutional & Insider Ownership

78.6% of WisdomTree shares are owned by institutional investors. 10.1% of WisdomTree shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares WisdomTree and BlackRock Multi-Sector Income Trust”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WisdomTree	$493.75 million	5.98	$109.13 million	$0.41	47.10
BlackRock Multi-Sector Income Trust	$55.85 million	N/A	N/A	N/A	N/A

WisdomTree has higher revenue and earnings than BlackRock Multi-Sector Income Trust.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WisdomTree and BlackRock Multi-Sector Income Trust, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WisdomTree	0	4	3	0	2.43
BlackRock Multi-Sector Income Trust	0	0	0	0	0.00

WisdomTree presently has a consensus price target of $20.16, suggesting a potential upside of 4.39%. Given WisdomTree’s stronger consensus rating and higher possible upside, equities analysts clearly believe WisdomTree is more favorable than BlackRock Multi-Sector Income Trust.

Profitability

This table compares WisdomTree and BlackRock Multi-Sector Income Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
WisdomTree	11.26%	33.31%	9.79%
BlackRock Multi-Sector Income Trust	N/A	N/A	N/A

Dividends

WisdomTree pays an annual dividend of $0.12 per share and has a dividend yield of 0.6%. BlackRock Multi-Sector Income Trust pays an annual dividend of $1.60 per share and has a dividend yield of 13.1%. WisdomTree pays out 29.3% of its earnings in the form of a dividend.

Summary

WisdomTree beats BlackRock Multi-Sector Income Trust on 9 of the 11 factors compared between the two stocks.

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.

About BlackRock Multi-Sector Income Trust

BlackRock Multi-Sector Income Trust is a close ended fixed income mutual fund launched by BlackRock, Inc. It is co-managed by BlackRock Advisors, LLC and BlackRock (Singapore) Limited. The fund invests in fixed income markets. It invests primarily in loan and debt instruments and other investments with similar economic characteristic. BlackRock Multi-Sector Income Trust was formed on February 25, 2013 and is domiciled in the United States.