Head-To-Head Review: MarketWise (NASDAQ:MKTW) & Singapore Exchange (OTCMKTS:SPXCY)

MarketWise (NASDAQ:MKTW) and Singapore Exchange (OTCMKTS:SPXCY) are both financial services companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

23.0% of MarketWise shares are held by institutional investors. 28.6% of MarketWise shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for MarketWise and Singapore Exchange, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MarketWise	0	1	1	0	2.50
Singapore Exchange	0	0	0	0	N/A

MarketWise currently has a consensus price target of $2.50, suggesting a potential upside of 316.53%. Given MarketWise’s higher possible upside, equities research analysts plainly believe MarketWise is more favorable than Singapore Exchange.

Earnings and Valuation

This table compares MarketWise and Singapore Exchange”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MarketWise	$432.34 million	0.44	$1.78 million	$0.08	7.50
Singapore Exchange	N/A	N/A	N/A	$4.43	29.22

MarketWise has higher revenue and earnings than Singapore Exchange. MarketWise is trading at a lower price-to-earnings ratio than Singapore Exchange, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares MarketWise and Singapore Exchange’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MarketWise	0.80%	-1.30%	0.91%
Singapore Exchange	N/A	N/A	N/A

Dividends

MarketWise pays an annual dividend of $0.04 per share and has a dividend yield of 6.7%. Singapore Exchange pays an annual dividend of $3.96 per share and has a dividend yield of 3.1%. MarketWise pays out 50.0% of its earnings in the form of a dividend. Singapore Exchange pays out 89.3% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

MarketWise beats Singapore Exchange on 9 of the 12 factors compared between the two stocks.

About MarketWise

MarketWise, Inc. operates a content and technology multi-brand platform for self-directed investors in the United States and Internationally. Its platform includes subscription businesses that provides financial research, software, education, and tools to navigate the financial markets. The company offers various investment strategies, such as value investing, income, growth, commodities, cryptocurrencies, venture, crowdfunded investing, biotechnology, mutual funds, options, and trading; investment research product portfolio through a range of media, including desktops, laptops, tablets, and mobile; and financial newsletters. It provides a suite of stock research tools and portfolio management services under the Chaikin Analytics brand; portfolio management software tools under the TradeSmith brand name; and database of accounting-based financial summaries under the Altimetry brand. In addition, the company develops screeners, monitors, portfolio management tools, and proprietary indicators that produce a composite score to rank publicly traded companies. The company was founded in 1999 and is headquartered in Baltimore, Maryland.

About Singapore Exchange

Singapore Exchange Limited, together with its subsidiaries, operates as an integrated securities and derivatives exchange, and related clearing houses in Singapore. It operates through Fixed Income, Currencies, and Commodities; Equities; and Data, Connectivity, and Indices segments. The Fixed Income, Currencies, and Commodities segment offers fixed income issuer, trading and clearing, and collateral management services. The Equities segment provides issuer, securities trading and clearing, securities settlement and depository management, derivatives trading and clearing, and collateral management services. The Data, Connectivity, and Indices segment offers market data, connectivity, and indices services. The company offers counterparty guarantee, and depository and related services for securities and derivatives transactions; bond trading services; front-line regulatory functions; and computer and software maintenance services. It also provides an electronic foreign exchange trading solutions and platform; electronic communication network; FX platform and support services; and management consultancy services for index activities. In addition, the company offers membership and management services to related corporations; distributes bulk freight market indices and information; and operates an electricity market, as well as provides administration services for index calculation, risk analyses, and financial research. Singapore Exchange Limited was incorporated in 1999 and is headquartered in Singapore.