Head to Head Contrast: Walter Investment Management Corp. (WAC) and Meta Financial Group (CASH)
Walter Investment Management Corp. (NYSE: WAC) and Meta Financial Group (NASDAQ:CASH) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Earnings and Valuation
This table compares Walter Investment Management Corp. and Meta Financial Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Walter Investment Management Corp.||$947.12 million||0.02||-$217.78 million||($5.96)||-0.09|
|Meta Financial Group||$238.92 million||3.33||$49.55 million||$5.30||16.04|
Meta Financial Group has higher revenue, but lower earnings than Walter Investment Management Corp.. Walter Investment Management Corp. is trading at a lower price-to-earnings ratio than Meta Financial Group, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
56.5% of Walter Investment Management Corp. shares are held by institutional investors. Comparatively, 74.2% of Meta Financial Group shares are held by institutional investors. 46.6% of Walter Investment Management Corp. shares are held by insiders. Comparatively, 6.1% of Meta Financial Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This table compares Walter Investment Management Corp. and Meta Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walter Investment Management Corp.||-18.10%||-796.24%||-0.52%|
|Meta Financial Group||18.74%||16.60%||1.58%|
This is a breakdown of current ratings and target prices for Walter Investment Management Corp. and Meta Financial Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walter Investment Management Corp.||1||1||0||0||1.50|
|Meta Financial Group||0||1||1||0||2.50|
Walter Investment Management Corp. currently has a consensus price target of $1.13, suggesting a potential upside of 100.53%. Meta Financial Group has a consensus price target of $91.50, suggesting a potential upside of 7.65%. Given Walter Investment Management Corp.’s higher possible upside, equities research analysts clearly believe Walter Investment Management Corp. is more favorable than Meta Financial Group.
Risk & Volatility
Walter Investment Management Corp. has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Meta Financial Group has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.6%. Walter Investment Management Corp. does not pay a dividend. Meta Financial Group pays out 9.8% of its earnings in the form of a dividend.
Meta Financial Group beats Walter Investment Management Corp. on 11 of the 15 factors compared between the two stocks.
About Walter Investment Management Corp.
Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. The Company operates through three segments: Servicing, Originations and Reverse Mortgage. The Servicing segment consists of operations that perform servicing for third-party credit owners of mortgage loans, as well as its own mortgage loan portfolio. The Servicing segment also includes Insurance, and Loans and Residuals businesses. The Originations segment consists of operations that originate and purchase mortgage loans that are intended for sale to third parties. The Reverse Mortgage segment consists of operations which purchases and originates home equity conversion mortgage that are securitized, but remain on the consolidated balance sheet as collateral for secured borrowings.
About Meta Financial Group
Meta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.
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