Comparing Wright Investors Service (OTCMKTS:WISH) and Eaton Vance (OTCMKTS:EV)

Wright Investors Service (OTCMKTS:WISH) and Eaton Vance (NYSE:EV) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Valuation & Earnings

This table compares Wright Investors Service and Eaton Vance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Wright Investors Service $5.41 million 1.48 -$1.72 million N/A N/A
Eaton Vance $1.70 billion 3.18 $381.93 million $3.21 14.94

Eaton Vance has higher revenue and earnings than Wright Investors Service.

Profitability

This table compares Wright Investors Service and Eaton Vance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wright Investors Service N/A -25.90% -25.25%
Eaton Vance 23.51% 35.45% 10.54%

Analyst Recommendations

This is a summary of recent ratings and target prices for Wright Investors Service and Eaton Vance, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wright Investors Service 0 0 0 0 N/A
Eaton Vance 2 5 0 0 1.71

Eaton Vance has a consensus price target of $43.17, indicating a potential downside of 9.99%. Given Eaton Vance’s higher possible upside, analysts clearly believe Eaton Vance is more favorable than Wright Investors Service.

Insider and Institutional Ownership

4.4% of Wright Investors Service shares are owned by institutional investors. Comparatively, 70.9% of Eaton Vance shares are owned by institutional investors. 32.6% of Wright Investors Service shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Wright Investors Service has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500. Comparatively, Eaton Vance has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.

Dividends

Eaton Vance pays an annual dividend of $1.50 per share and has a dividend yield of 3.1%. Wright Investors Service does not pay a dividend. Eaton Vance pays out 46.7% of its earnings in the form of a dividend.

Summary

Eaton Vance beats Wright Investors Service on 10 of the 12 factors compared between the two stocks.

Wright Investors Service Company Profile

Wright Investors' Service Holdings, Inc., through its wholly-owned subsidiary, The Winthrop Corporation, provides investment management, financial advisory, and investment research services to large and small investors in the United States. The company offers investment management products and services, including equity, fixed income, and balanced portfolios for various plan types, such as defined benefit, annuity, self-directed and 401(k), health and welfare, and education and training plans to sponsors, trade unions, endowments, corporations, state and local governments, municipalities, and foundations. It also manages various accounts, such as discretionary investment accounts, individual retirement accounts, and 401k plans, as well as accounts for non-corporate fiduciaries comprising trustees, executors, guardians, personal representatives, attorneys, and other professionals to support high net worth investors and other individual investors; and provides a family of mutual funds. In addition, the company offers research products for institutional investors that include Wright Reports, a research report providing approximately 10 years of fundamental information for approximately 35,000 companies in 63 countries; and One-Page Report, a company specific single page report with approximately 10 years of history that contains valuation ratios, earnings, and dividends. Its research products also comprise Wright Industry Averages Reports, which are consolidated reports prepared on a Global and Regional basis for various industries; corporateInformation.com, an online commercial Website that offers subscription access to the universe of Wright Reports; Wright Fiduciary Lists; and Wright FIRST Investment Research Service, a financial management service to portfolio, trust, and investment professionals. The company is headquartered in Greenwich, Connecticut.

Eaton Vance Company Profile

Eaton Vance Corp., through its subsidiaries, engages in the creation, marketing, and management of investment funds in the United States. It also provides investment management and counseling services to institutions and individuals. Further, the company operates as an adviser and distributor of investment companies and separate accounts. As of October 31, 2004, the company provided investment advisory or administration services to approximately 150 funds; approximately 1,300 separately managed individual and institutional accounts; and participated in approximately 40 retail-managed account broker/dealer programs. It markets and distributes shares of funds through a retail network of national and regional broker/dealers, banks, insurance companies, and financial planning firms. Eaton Vance Corp. was incorporated on January 29, 1981 and is headquartered in Boston, Massachusetts.

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