Analyzing Stonegate Mortgage (NYSE:SGM) & Its Competitors

Stonegate Mortgage (NYSE: SGM) is one of 27 publicly-traded companies in the “Consumer Lending” industry, but how does it weigh in compared to its rivals? We will compare Stonegate Mortgage to related companies based on the strength of its profitability, dividends, risk, valuation, earnings, analyst recommendations and institutional ownership.

Volatility & Risk

Stonegate Mortgage has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Stonegate Mortgage’s rivals have a beta of 1.45, meaning that their average share price is 45% more volatile than the S&P 500.

Earnings and Valuation

This table compares Stonegate Mortgage and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Stonegate Mortgage N/A N/A 6.89
Stonegate Mortgage Competitors $2.77 billion $388.84 million 68.42

Stonegate Mortgage’s rivals have higher revenue and earnings than Stonegate Mortgage. Stonegate Mortgage is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Stonegate Mortgage and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stonegate Mortgage -13.22% -6.70% -1.57%
Stonegate Mortgage Competitors -122.80% -80.48% -0.65%

Analyst Recommendations

This is a breakdown of recent ratings for Stonegate Mortgage and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stonegate Mortgage 0 0 0 0 N/A
Stonegate Mortgage Competitors 187 714 1117 55 2.50

As a group, “Consumer Lending” companies have a potential upside of 17.85%. Given Stonegate Mortgage’s rivals higher possible upside, analysts plainly believe Stonegate Mortgage has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

44.3% of Stonegate Mortgage shares are owned by institutional investors. Comparatively, 78.5% of shares of all “Consumer Lending” companies are owned by institutional investors. 44.5% of Stonegate Mortgage shares are owned by insiders. Comparatively, 14.1% of shares of all “Consumer Lending” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Stonegate Mortgage rivals beat Stonegate Mortgage on 6 of the 9 factors compared.

About Stonegate Mortgage

Stonegate Mortgage Corporation is a non-bank mortgage company. The Company is focused on originating, financing and servicing the United States residential mortgage loans. The Company’s segments include Originations, Servicing, Financing and Other. The Originations segment primarily originates and sells residential mortgage loans, which conform to the underwriting guidelines of the government sponsored enterprises and government agencies, and non-agency whole loan investors. The Servicing segment includes loan administration, collection and default activities, including the collection and remittance of loan payments, responding to customer inquiries, collection of principal and interest payments, holding custodial funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors and modifying loans. The Financing segment includes warehouse-lending activities to correspondent customers by the Company’s subsidiary, NattyMac, LLC.

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