Head-To-Head Analysis: UWM (UWMC) & Its Peers

UWM (NYSE:UWMC) is one of 19 public companies in the “FIN – MTG&REL SVS” industry, but how does it weigh in compared to its rivals? We will compare UWM to similar businesses based on the strength of its profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Risk and Volatility

UWM has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500. Comparatively, UWM’s rivals have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UWM	-0.36%	-3.86%	-0.55%
UWM Competitors	-5.93%	-85.16%	-0.75%

Valuation & Earnings

This table compares UWM and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UWM	$2.16 billion	$14.40 million	-32.85
UWM Competitors	$18.27 billion	$1.82 billion	-69.38

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

Dividends

UWM pays an annual dividend of $0.40 per share and has a dividend yield of 9.4%. UWM pays out -307.7% of its earnings in the form of a dividend. As a group, “FIN – MTG&REL SVS” companies pay a dividend yield of 2.7% and pay out 40.3% of their earnings in the form of a dividend. UWM is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	0	5	2	0	2.29
UWM Competitors	154	679	985	15	2.47

UWM currently has a consensus price target of $6.75, suggesting a potential upside of 58.08%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 17.13%. Given UWM’s higher probable upside, equities analysts plainly believe UWM is more favorable than its rivals.

Institutional & Insider Ownership

53.6% of UWM shares are owned by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are owned by institutional investors. 87.5% of UWM shares are owned by insiders. Comparatively, 29.5% of shares of all “FIN – MTG&REL SVS” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

UWM beats its rivals on 10 of the 15 factors compared.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.