Critical Comparison: Mr. Cooper Group (NASDAQ:COOP) vs. NU (NYSE:NU)

Mr. Cooper Group (NASDAQ:COOPGet Rating) and NU (NYSE:NUGet Rating) are both finance companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, valuation, analyst recommendations, profitability and risk.

Valuation & Earnings

This table compares Mr. Cooper Group and NU’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Mr. Cooper Group $3.32 billion 0.85 $1.45 billion $18.74 2.03
NU $1.70 billion 10.51 -$164.99 million N/A N/A

Mr. Cooper Group has higher revenue and earnings than NU.

Profitability

This table compares Mr. Cooper Group and NU’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Mr. Cooper Group 48.79% 16.11% 3.05%
NU N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mr. Cooper Group and NU, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Mr. Cooper Group 0 2 2 0 2.50
NU 2 4 9 0 2.47

Mr. Cooper Group presently has a consensus target price of $58.50, suggesting a potential upside of 53.46%. NU has a consensus target price of $10.73, suggesting a potential upside of 177.35%. Given NU’s higher possible upside, analysts clearly believe NU is more favorable than Mr. Cooper Group.

Institutional and Insider Ownership

83.0% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 70.7% of NU shares are held by institutional investors. 2.6% of Mr. Cooper Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Mr. Cooper Group beats NU on 8 of the 11 factors compared between the two stocks.

About Mr. Cooper Group (Get Rating)

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States. The company operates through two segments: Servicing and Originations. The Servicing segment performs activities for underlying mortgages, including collecting and disbursing borrower payments, investor reporting, customer service, and modifying loans. The Originations segment originates residential mortgage loans through its direct-to-consumer channel, as well as originates and purchases loans from mortgage bankers and brokers. It operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. was incorporated in 2015 and is based in Coppell, Texas.

About NU (Get Rating)

Nu Holdings Ltd. operates as a digital financial services platform and technology company primarily in Brazil, Mexico, and Colombia. It offers Nu credit and debit cards; Ultraviolet credit and debit cards; and mobile payment solutions for NuAccount customers to make and receive transfers, pay bills, and make everyday purchases through their mobile phones. The company provides savings solutions, such as Nu Personal Accounts, a digital account solution that supports all personal finance activities, from daily purchases and money transfers to savings; and Nu business accounts designed specifically for entrepreneur customers and their businesses. In addition, it offers NuInvest, an investment product that provides equity, fixed-income, options, and ETF products, as well as multimarket funds with curated asset allocations based on the customer's risk profile and financial position; personal unsecured loans; in-app ‘buy now pay later' solution for Nu card customers to pay credit and debit purchases, and banking payment slips over time in up to twelve installments; and NuInsurance protecting solutions to help its customers secure life insurance and funeral benefits. The company was founded in 2013 and is headquartered in Sao Paulo, Brazil.

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