Fannie Mae (OTCMKTS:FNMA) versus Finance of America Companies (NYSE:FOA) Head-To-Head Contrast

Fannie Mae (OTCMKTS:FNMA) and Finance of America Companies (NYSE:FOA) are both finance companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Institutional and Insider Ownership

0.0% of Fannie Mae shares are owned by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are owned by institutional investors. 1.0% of Fannie Mae shares are owned by company insiders. Comparatively, 25.0% of Finance of America Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Fannie Mae and Finance of America Companies”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fannie Mae	$152.67 billion	0.09	$16.98 billion	N/A	N/A
Finance of America Companies	$338.17 million	0.87	$15.49 million	$6.11	4.36

Fannie Mae has higher revenue and earnings than Finance of America Companies.

Volatility & Risk

Fannie Mae has a beta of 2.03, meaning that its share price is 103% more volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500.

Profitability

This table compares Fannie Mae and Finance of America Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	9.68%	-34.69%	0.35%
Finance of America Companies	N/A	0.96%	0.01%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Fannie Mae and Finance of America Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	0	0	0	1.00
Finance of America Companies	0	1	1	0	2.50

Fannie Mae presently has a consensus target price of $4.00, suggesting a potential downside of 64.57%. Finance of America Companies has a consensus target price of $27.50, suggesting a potential upside of 3.23%. Given Finance of America Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Finance of America Companies is more favorable than Fannie Mae.

Summary

Finance of America Companies beats Fannie Mae on 7 of the 12 factors compared between the two stocks.

About Fannie Mae

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.

About Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.