Analyzing Waddell & Reed Financial (WDR) and Woodstock (WSFL)

Waddell & Reed Financial (NYSE:WDR) and Woodstock (OTCMKTS:WSFL) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Waddell & Reed Financial and Woodstock, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Waddell & Reed Financial 4 1 0 0 1.20
Woodstock 0 0 0 0 N/A

Waddell & Reed Financial currently has a consensus price target of $18.40, suggesting a potential upside of 5.26%. Given Waddell & Reed Financial’s higher possible upside, research analysts plainly believe Waddell & Reed Financial is more favorable than Woodstock.

Dividends

Waddell & Reed Financial pays an annual dividend of $1.00 per share and has a dividend yield of 5.7%. Woodstock does not pay a dividend. Waddell & Reed Financial pays out 43.9% of its earnings in the form of a dividend.

Insider and Institutional Ownership

98.2% of Waddell & Reed Financial shares are held by institutional investors. 2.1% of Waddell & Reed Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Waddell & Reed Financial has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Woodstock has a beta of -0.33, meaning that its share price is 133% less volatile than the S&P 500.

Valuation & Earnings

This table compares Waddell & Reed Financial and Woodstock’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Waddell & Reed Financial $1.16 billion 1.15 $183.59 million $2.28 7.67
Woodstock $6.86 million 0.06 -$300,000.00 N/A N/A

Waddell & Reed Financial has higher revenue and earnings than Woodstock.

Profitability

This table compares Waddell & Reed Financial and Woodstock’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Waddell & Reed Financial 15.82% 20.81% 14.21%
Woodstock N/A N/A N/A

Summary

Waddell & Reed Financial beats Woodstock on 11 of the 12 factors compared between the two stocks.

Waddell & Reed Financial Company Profile

Waddell & Reed Financial, Inc., through its subsidiaries, provides investment management and advisory, investment product underwriting and distribution, and shareholder services administration to mutual funds, and institutional and separately managed accounts in the United States. The company acts as an investment adviser for institutional and other private investors, and provides sub advisory services to other investment companies; and underwrites and distributes registered open-end mutual fund portfolios. It also offers fee-based asset allocation investment advisory products to advisors channel customers; distributes business partners' variable annuity products, and retirement and life insurance products to advisors channel customers; and sells life insurance and disability products underwritten by various carriers. The company distributes investment products through its wholesale channel comprising other broker/dealers, various retirement platforms, and registered investment advisors, as well as through independent financial advisors; and markets investment advisory services to institutional investors directly or through consultants. Waddell & Reed Financial, Inc. was founded in 1937 and is based in Overland Park, Kansas.

Woodstock Company Profile

Woodstock Holdings, Inc. engages in the businesses of security brokerage and investment banking. It trades equity securities on an agency only basis and trades bonds and other instruments on a principal or agency basis on various exchanges as well as maintains selling agreements with mutual fund families and insurance companies offering load and no load funds, annuities and insurance products. The company was founded by William Jasper Raike III in March 1995 and is headquartered in Woodstock, GA.

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