Hercules Capital, Inc. (HTGC) vs WisdomTree, Inc. (WT)

Hercules Capital, Inc. and WisdomTree, Inc. are both Asset Management companies. WisdomTree, Inc. is the larger, with a market value of $3.6B against $3.1B — 1.2× the size. Hercules Capital, Inc. trades at the lower P/E: 8.1× against 43.4×. WisdomTree, Inc. grew revenue faster over the last twelve months: 37.1% against 12.3%. Hercules Capital, Inc. has the higher net margin (67.7% vs 13.2%) and the lower return on invested capital (4.64% vs 12.3%). Both pay a dividend; Hercules Capital, Inc. yields more (9.25% vs 1.73%). Across the 22 metrics below, Hercules Capital, Inc. leads on 11 and WisdomTree, Inc. on 11.

Valuation

Metric HTGC WT Asset Management median
P/E 8.12 43.45 14.62
P/S 5.56 5.95 2.97
P/B 1.38 8.66 0.94
Price to free cash flow 373.68 18.85 8.93
EV/EBITDA 11.96 17.55 10.32
EV/Sales 9.60 7.23 5.72
Earnings yield 12.32% 2.30% 4.53%
Free cash flow yield 0.27% 5.31% 4.65%

Profitability

Metric HTGC WT Asset Management median
Gross margin 100.00% 100.00% 100.00%
Operating margin 78.48% 38.80% 33.03%
Net margin 67.68% 13.15% 13.53%
Free cash flow margin 1.49% 31.55% 12.44%
Return on equity 17.32% 18.56% 4.83%
Return on assets 8.54% 5.91% 1.57%
Return on invested capital 4.64% 12.33% 3.04%

Growth

Metric HTGC WT Asset Management median
Revenue growth (TTM) 12.34% 37.14% 6.97%
EPS growth (last fiscal year) 14.91% 127.27% —
Revenue growth, 5-year CAGR 13.14% 14.59% 12.13%
Net income growth, 5-year CAGR 8.37% 0.00% 0.00%

Health

Metric HTGC WT Asset Management median
Debt to equity 1.03 2.57 0.42
Current ratio 1.37 3.00 1.28
Net debt to EBITDA 5.21 3.51 1.06

Dividend

Metric HTGC WT Asset Management median
Dividend yield 9.25% 1.73% 6.92%
Payout ratio 0.70 0.21 0.77

Size

Metric HTGC WT Asset Management median
Market cap 3.14b 3.63b 721.34m

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