Critical Review: Nationstar Mortgage Holdings (NSM) versus Landmark Infrastructure Partners (LMRK)
Nationstar Mortgage Holdings (NYSE: NSM) and Landmark Infrastructure Partners (NASDAQ:LMRK) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.
Risk and Volatility
Nationstar Mortgage Holdings has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Landmark Infrastructure Partners has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500.
This table compares Nationstar Mortgage Holdings and Landmark Infrastructure Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Nationstar Mortgage Holdings||10.52%||9.64%||0.87%|
|Landmark Infrastructure Partners||26.38%||9.69%||2.65%|
Insider & Institutional Ownership
99.0% of Nationstar Mortgage Holdings shares are owned by institutional investors. Comparatively, 20.6% of Landmark Infrastructure Partners shares are owned by institutional investors. 0.8% of Nationstar Mortgage Holdings shares are owned by company insiders. Comparatively, 0.7% of Landmark Infrastructure Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Nationstar Mortgage Holdings and Landmark Infrastructure Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Nationstar Mortgage Holdings||2||3||5||0||2.30|
|Landmark Infrastructure Partners||0||0||2||0||3.00|
Nationstar Mortgage Holdings currently has a consensus price target of $18.33, suggesting a potential downside of 3.71%. Landmark Infrastructure Partners has a consensus price target of $18.50, suggesting a potential upside of 6.02%. Given Landmark Infrastructure Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Landmark Infrastructure Partners is more favorable than Nationstar Mortgage Holdings.
Valuation and Earnings
This table compares Nationstar Mortgage Holdings and Landmark Infrastructure Partners’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Nationstar Mortgage Holdings||$1.42 billion||1.31||$223.85 million||$2.29||8.31|
|Landmark Infrastructure Partners||$47.53 million||7.25||$38.35 million||$0.54||32.31|
Nationstar Mortgage Holdings has higher revenue and earnings than Landmark Infrastructure Partners. Nationstar Mortgage Holdings is trading at a lower price-to-earnings ratio than Landmark Infrastructure Partners, indicating that it is currently the more affordable of the two stocks.
Landmark Infrastructure Partners pays an annual dividend of $1.42 per share and has a dividend yield of 8.1%. Nationstar Mortgage Holdings does not pay a dividend. Landmark Infrastructure Partners pays out 263.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Nationstar Mortgage Holdings Company Profile
Nationstar Mortgage Holdings Inc. provides servicing, origination and transaction based services principally to single-family residences throughout the United States. The Company operates through three segments: Servicing, Originations and Xome. The Company provides residential loan services in the United States. The Company also operates an integrated residential loan origination platform that is primarily focused on customer retention. Its Xome subsidiary offers an array of complementary services related to the purchase and disposition of residential real estate. It provides non-bank services and residential mortgage services in the United States conducting operations through its Nationstar Mortgage and Champion Mortgage brands. It originates and purchases conventional mortgage loans conforming to the underwriting standards of the government sponsored entities, which it collectively refers to as Agency loans. The Xome segment is a provider of technology and data-enhanced solutions.
Landmark Infrastructure Partners Company Profile
Landmark Infrastructure Partners LP is a master limited partnership formed to acquire, own and manage a portfolio of real property interests that it leases to companies in the wireless communication, outdoor advertising and renewable power generation industries. The Company operates through three segments. The Wireless Communication segment consists of leasing real property interests and financing to companies in the wireless communication industry in the United States. The Outdoor Advertising segment consists of leasing real property interests to companies in the outdoor advertising industry in the United States. The Renewable Power Generation segment consists of leasing real property interests and financing to companies in the renewable power industry in the United States. The Company’s real property interests consist of a portfolio of long term and perpetual easements, tenant lease assignments and fee simple properties located primarily in the United States.
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