Walker & Dunlop (NYSE: WD) and WMIH (NASDAQ:WMIH) are both small-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.
This is a breakdown of current ratings and target prices for Walker & Dunlop and WMIH, as provided by MarketBeat.
||Strong Buy Ratings
|Walker & Dunlop
Walker & Dunlop currently has a consensus price target of $55.50, suggesting a potential downside of 6.39%. Given Walker & Dunlop’s higher possible upside, analysts clearly believe Walker & Dunlop is more favorable than WMIH.
Earnings and Valuation
This table compares Walker & Dunlop and WMIH’s gross revenue, earnings per share and valuation.
||Earnings Per Share
|Walker & Dunlop
Walker & Dunlop has higher revenue and earnings than WMIH.
This table compares Walker & Dunlop and WMIH’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
|Walker & Dunlop
Volatility & Risk
Walker & Dunlop has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, WMIH has a beta of -1.41, meaning that its stock price is 241% less volatile than the S&P 500.
Walker & Dunlop pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. WMIH does not pay a dividend. Walker & Dunlop pays out 21.0% of its earnings in the form of a dividend.
Institutional and Insider Ownership
81.1% of Walker & Dunlop shares are owned by institutional investors. Comparatively, 37.6% of WMIH shares are owned by institutional investors. 11.7% of Walker & Dunlop shares are owned by company insiders. Comparatively, 2.8% of WMIH shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Walker & Dunlop beats WMIH on 10 of the 13 factors compared between the two stocks.
About Walker & Dunlop
Walker & Dunlop, Inc. is a holding company, which conducts its operations through Walker & Dunlop, LLC. The Company provides commercial real estate financial products and services primarily to developers and owners of multifamily properties. The Company originates, sells and services a range of multifamily and other commercial real estate financing products, including Multifamily Finance, Federal Housing Administration (FHA) Finance, Capital Markets, and Proprietary Capital. It originates and sells loans through the programs of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the government-sponsored enterprises (GSEs)), the Government National Mortgage Association (Ginnie Mae) and the Federal Housing Administration, a division of the United States Department of Housing and Urban Development (together with Ginnie Mae, HUD).
WMIH Corp., through its subsidiary, WM Mortgage Reinsurance Company, Inc., engages in legacy reinsurance business with respect to mortgage insurance operated in runoff mode. The company was formerly known as WMI Holdings Corp. and changed its name to WMIH Corp. in May 2015. WMIH Corp. was founded in 1889 and is headquartered in Seattle, Washington.
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