TipRanks vs II Rankings

I know everyone likes to refer to the II rankings, but in my conversations with both buyside and sell side analysts, they mention that it is really just a popularity contest.

Meanwhile, tipranks seems to focus only on returns, but I don’t see it referenced as much.

3 Comments
 

Do not base your decision on tipranks holy Jesus. 
 

II is not perfect but it’s a far more reliable judge of analyst quality than tipranks/BB rank/starmine by a mile. No one trusts return metrics for judging sellside analyst quality because the sellside bears no risk, it’s easy to massively outperform when the downside risk to you is nothing. A sellside analyst could get “blown up” and lose 30% on their recommendation returns and not even come close to losing their job.

 

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