Analyzing WMIH (COOP) and The Competition

WMIH (NASDAQ: COOP) is one of 32 public companies in the “Nondepository credit institutions” industry, but how does it weigh in compared to its competitors? We will compare WMIH to similar businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Profitability

This table compares WMIH and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WMIH 229.44% 18.07% 3.40%
WMIH Competitors 13.40% -56.29% -7.05%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for WMIH and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WMIH 0 2 1 0 2.33
WMIH Competitors 203 807 1044 49 2.45

WMIH currently has a consensus price target of $20.50, suggesting a potential upside of 35.67%. As a group, “Nondepository credit institutions” companies have a potential upside of 28.55%. Given WMIH’s higher possible upside, research analysts plainly believe WMIH is more favorable than its competitors.

Risk and Volatility

WMIH has a beta of -0.63, meaning that its share price is 163% less volatile than the S&P 500. Comparatively, WMIH’s competitors have a beta of 1.73, meaning that their average share price is 73% more volatile than the S&P 500.

Earnings and Valuation

This table compares WMIH and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WMIH $7.89 million $25.88 million 125.92
WMIH Competitors $4.39 billion $643.50 million 16.54

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

Institutional and Insider Ownership

52.9% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 1.7% of WMIH shares are owned by insiders. Comparatively, 18.2% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

WMIH competitors beat WMIH on 8 of the 13 factors compared.

About WMIH

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. It offers home loan servicers focused on delivering various servicing and lending products, services, and technologies. The company provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents, and mortgage companies. It operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is based in Coppell, Texas.

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