Walker & Dunlop (NYSE:WD) and SoFi Technologies (NASDAQ:SOFI) Critical Review

Walker & Dunlop (NYSE:WDGet Rating) and SoFi Technologies (NASDAQ:SOFIGet Rating) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, institutional ownership, earnings and valuation.

Valuation & Earnings

This table compares Walker & Dunlop and SoFi Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walker & Dunlop $1.26 billion 3.15 $265.76 million $8.15 14.69
SoFi Technologies $984.87 million 5.15 -$483.94 million N/A N/A

Walker & Dunlop has higher revenue and earnings than SoFi Technologies.

Volatility & Risk

Walker & Dunlop has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, SoFi Technologies has a beta of -0.54, indicating that its stock price is 154% less volatile than the S&P 500.

Institutional and Insider Ownership

71.4% of Walker & Dunlop shares are held by institutional investors. Comparatively, 50.0% of SoFi Technologies shares are held by institutional investors. 8.1% of Walker & Dunlop shares are held by insiders. Comparatively, 35.1% of SoFi Technologies shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Walker & Dunlop and SoFi Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walker & Dunlop 21.17% 18.81% 5.92%
SoFi Technologies N/A -11.43% -5.70%

Analyst Ratings

This is a summary of recent recommendations and price targets for Walker & Dunlop and SoFi Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walker & Dunlop 0 0 4 0 3.00
SoFi Technologies 0 6 7 0 2.54

Walker & Dunlop presently has a consensus price target of $171.00, indicating a potential upside of 42.79%. SoFi Technologies has a consensus price target of $15.88, indicating a potential upside of 159.55%. Given SoFi Technologies’ higher possible upside, analysts clearly believe SoFi Technologies is more favorable than Walker & Dunlop.

Summary

Walker & Dunlop beats SoFi Technologies on 8 of the 12 factors compared between the two stocks.

Walker & Dunlop Company Profile (Get Rating)

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate financing products and services for owners and developers of real estate in the United States. The company offers first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It also provides multifamily finance for manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae's DUS program; and construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. In addition, the company acts as an intermediary in the placement of commercial real estate debt between institutional sources of capital, including life insurance companies, investment banks, commercial banks, pension funds, CMBS conduits, and other institutional investors, as well as owners of various types of commercial real estate. Further, it advises on capital structure; develops the financing package; facilitates negotiations between its client and institutional sources of capital; coordinates due diligence; and assists in closing the transaction. Additionally, the company offers property sales brokerage, underwriting and risk management, and servicing and asset management services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.

SoFi Technologies Company Profile (Get Rating)

SoFi Technologies, Inc. provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The company's lending and financial services and products allows its members to borrow, save, spend, invest, and protect their money. It offers student loans; personal loans for debt consolidation and home improvement projects; and home loans. The company also provides cash management, investment, and technology services. In addition, it operates Galileo, a technology platform that offers services to financial and non-financial institutions; and Apex, a technology enabled platform that provides investment custody and clearing brokerage services, as well as Technisys, a cloud-based digital multi-product core banking platform. The company was founded in 2011 and is headquartered in San Francisco, California.

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