Net income basic or dilluted?

I am starting to do my own research into stocks and am finding there are two lines represented for net income on company financials. Basic and diluted.

I am not sure which one would be the most appropriate to use for analysis?

The stock in question is WETF.

Always diluted, no matter which stock.

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If I could ask a follow-up. What if you can find only one number for EPS and cannot determine if it is GAAP or non-GAAP? Thanks.

  • Matt

If there’s only one number it’s almost surely GAAP. If I have a choice, I almost always use the non-GAAP or adjusted. (There’s a full discussion of that in a separate small chapter in the Knowledgebase.)

Saul

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