TPG (NASDAQ:TPG) and MarketWise (NASDAQ:MKTW) Financial Review

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

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

Dividends

MarketWise pays an annual dividend of $1.00 per share and has a dividend yield of 4.9%. TPG pays an annual dividend of $2.20 per share and has a dividend yield of 4.6%. 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 252.9% 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. MarketWise is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

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	0.72%	-0.94%	1.15%
TPG	5.32%	29.05%	8.15%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarketWise	$328.12 million	0.98	$5.62 million	$0.83	24.65
TPG	$4.67 billion	3.97	$184.59 million	$0.87	55.47

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 Recommendations

This is a summary of recent recommendations and price targets for MarketWise and TPG, as reported 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 target price of $61.00, indicating a potential upside of 26.40%. Given TPG’s stronger consensus rating and higher probable upside, analysts clearly believe TPG is more favorable than MarketWise.

Volatility and Risk

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

Summary

TPG beats MarketWise on 14 of the 17 factors compared between the two stocks.

About MarketWise

MarketWise is a financial research and publishing company that provides independent investment research, market commentary, and financial education to individual investors. Its subscription-based services cover topics such as stocks, options, retirement planning, and trading strategies, and may include research publications, analytical tools, and educational materials. The company operates a portfolio of financial publishing brands, including Stansberry Research, InvestorPlace, TradeSmith, and Chaikin Analytics.

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.