Analyzing MarketWise (NASDAQ:MKTW) & TPG (NASDAQ:TPG)

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

Insider and Institutional Ownership

94.0% of TPG shares are held by institutional investors. Comparatively, 23.0% of MarketWise shares are held by institutional investors. 61.4% of TPG shares are held by company insiders. Comparatively, 29.9% of MarketWise shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TPG	5.32%	29.05%	8.15%
MarketWise	0.70%	-0.96%	1.10%

Volatility and Risk

TPG has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500. Comparatively, MarketWise has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.

Dividends

TPG pays an annual dividend of $2.36 per share and has a dividend yield of 4.8%. MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 4.4%. 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 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. MarketWise has raised its dividend for 1 consecutive years.

Analyst Recommendations

This is a summary of recent ratings for TPG and MarketWise, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TPG	0	4	11	0	2.73
MarketWise	0	1	1	0	2.50

TPG currently has a consensus target price of $61.00, suggesting a potential upside of 24.90%. Given TPG’s stronger consensus rating and higher probable upside, analysts plainly believe TPG is more favorable than MarketWise.

Valuation and Earnings

This table compares TPG and MarketWise”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TPG	$4.67 billion	4.02	$184.59 million	$0.87	56.14
MarketWise	$328.12 million	1.08	$5.62 million	$0.83	27.08

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.

Summary

TPG beats MarketWise on 15 of the 17 factors compared between the two stocks.

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.

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.