Wealthfront (NASDAQ:WLTH) & Silvercrest Asset Management Group (NASDAQ:SAMG) Head-To-Head Analysis

Silvercrest Asset Management Group (NASDAQ:SAMG) and Wealthfront (NASDAQ:WLTH) are both small-cap finance companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

This table compares Silvercrest Asset Management Group and Wealthfront’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Silvercrest Asset Management Group	0.74%	8.55%	4.67%
Wealthfront	-19.42%	-14.62%	-5.13%

Dividends

Silvercrest Asset Management Group pays an annual dividend of $0.84 per share and has a dividend yield of 7.6%. Wealthfront pays an annual dividend of $0.32 per share and has a dividend yield of 2.9%. Silvercrest Asset Management Group pays out 700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wealthfront pays out -34.4% of its earnings in the form of a dividend. Silvercrest Asset Management Group has increased its dividend for 1 consecutive years. Silvercrest Asset Management Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Silvercrest Asset Management Group and Wealthfront”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Silvercrest Asset Management Group	$125.32 million	1.04	$4.89 million	$0.12	91.83
Wealthfront	$371.71 million	4.58	-$42.07 million	($0.93)	-11.72

Silvercrest Asset Management Group has higher earnings, but lower revenue than Wealthfront. Wealthfront is trading at a lower price-to-earnings ratio than Silvercrest Asset Management Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Silvercrest Asset Management Group and Wealthfront, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Silvercrest Asset Management Group	1	1	0	0	1.50
Wealthfront	1	4	5	0	2.40

Wealthfront has a consensus target price of $12.36, indicating a potential upside of 13.37%. Given Wealthfront’s stronger consensus rating and higher possible upside, analysts clearly believe Wealthfront is more favorable than Silvercrest Asset Management Group.

Insider and Institutional Ownership

47.6% of Silvercrest Asset Management Group shares are owned by institutional investors. 21.7% of Silvercrest Asset Management Group shares are owned by insiders. Comparatively, 27.4% of Wealthfront shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Silvercrest Asset Management Group beats Wealthfront on 9 of the 16 factors compared between the two stocks.

About Silvercrest Asset Management Group

Silvercrest Asset Management Group, Inc. is an investment advisory and wealth management firm serving high-net-worth individuals, families, family offices, institutions, and charitable organizations. The company provides customized investment management and financial planning services designed to address clients’ long-term wealth objectives. Its services include portfolio management, asset allocation, manager selection, wealth planning, family office support, and advice related to trusts, estates, and other complex financial matters.

About Wealthfront

Wealthfront is a U.S.-based digital financial services company that provides automated investing, cash management and financial planning tools. Its platform is designed to help individuals manage savings and investments through online accounts and software. Wealthfront’s offerings include diversified investment portfolios managed with automated strategies, cash accounts offered through partner banks, and tools for setting financial goals and tracking progress. The company has also offered services such as individual stock investing and portfolio lines of credit.