PennyMac Financial Services (PFSI) & The Competition Head to Head Comparison
PennyMac Financial Services (NYSE: PFSI) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its peers? We will compare PennyMac Financial Services to similar businesses based on the strength of its risk, analyst recommendations, valuation, dividends, institutional ownership, earnings and profitability.
This table compares PennyMac Financial Services and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PennyMac Financial Services||6.87%||4.79%||1.21%|
|PennyMac Financial Services Competitors||14.79%||-27.48%||0.87%|
Volatility & Risk
PennyMac Financial Services has a beta of 0.61, meaning that its stock price is 39% less volatile than the S&P 500. Comparatively, PennyMac Financial Services’ peers have a beta of 0.83, meaning that their average stock price is 17% less volatile than the S&P 500.
Valuation and Earnings
This table compares PennyMac Financial Services and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|PennyMac Financial Services||$1.24 billion||N/A||6.14|
|PennyMac Financial Services Competitors||$678.45 million||$169.32 million||12.27|
PennyMac Financial Services has higher revenue, but lower earnings than its peers. PennyMac Financial Services is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of recent ratings and target prices for PennyMac Financial Services and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PennyMac Financial Services||1||1||5||0||2.57|
|PennyMac Financial Services Competitors||108||447||480||12||2.38|
PennyMac Financial Services currently has a consensus price target of $20.25, indicating a potential upside of 10.96%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 27.84%. Given PennyMac Financial Services’ peers higher probable upside, analysts plainly believe PennyMac Financial Services has less favorable growth aspects than its peers.
Institutional & Insider Ownership
86.6% of PennyMac Financial Services shares are owned by institutional investors. Comparatively, 54.7% of shares of all “Retail & Mortgage Banks” companies are owned by institutional investors. 45.6% of PennyMac Financial Services shares are owned by company insiders. Comparatively, 12.8% of shares of all “Retail & Mortgage Banks” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
PennyMac Financial Services beats its peers on 7 of the 12 factors compared.
About PennyMac Financial Services
PennyMac Financial Services, Inc. (PFSI) is a financial services company. The Company is focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States mortgage market. The Company operates through three segments: loan production, loan servicing and investment management. PFSI’s mortgage banking subsidiary, PennyMac Loan Services, LLC (PLS), is a non-bank producer and servicer of mortgage loans in the United States. As of December 31, 2016, PLS serviced loans in all 50 states, the District of Columbia, Guam and the United States Virgin Islands, and originated loans in 49 states and the District of Columbia. PFSI’s investment management subsidiary, PNMAC Capital Management, LLC (PCM), is an investment advisor. PLS is a seller and servicer for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).
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