America First Multifamily Investors (NASDAQ:ATAX) and WMIH (NASDAQ:COOP) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, risk, institutional ownership and analyst recommendations.
This is a breakdown of current ratings and price targets for America First Multifamily Investors and WMIH, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|America First Multifamily Investors||0||1||0||0||2.00|
WMIH has a consensus price target of $20.67, suggesting a potential upside of 36.68%. Given WMIH’s stronger consensus rating and higher possible upside, analysts clearly believe WMIH is more favorable than America First Multifamily Investors.
America First Multifamily Investors pays an annual dividend of $0.50 per share and has a dividend yield of 8.8%. WMIH does not pay a dividend. America First Multifamily Investors pays out 113.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares America First Multifamily Investors and WMIH’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|America First Multifamily Investors||$70.38 million||4.87||$30.59 million||$0.44||12.89|
|WMIH||$7.89 million||174.37||$25.88 million||$0.12||126.25|
America First Multifamily Investors has higher revenue and earnings than WMIH. America First Multifamily Investors is trading at a lower price-to-earnings ratio than WMIH, indicating that it is currently the more affordable of the two stocks.
This table compares America First Multifamily Investors and WMIH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|America First Multifamily Investors||46.47%||14.33%||4.08%|
Volatility and Risk
America First Multifamily Investors has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, WMIH has a beta of -0.63, suggesting that its stock price is 163% less volatile than the S&P 500.
Institutional and Insider Ownership
7.2% of America First Multifamily Investors shares are held by institutional investors. 1.3% of America First Multifamily Investors shares are held by insiders. Comparatively, 1.7% of WMIH shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
WMIH beats America First Multifamily Investors on 10 of the 16 factors compared between the two stocks.
America First Multifamily Investors Company Profile
America First Multifamily Investors, L.P. acquires, holds, sells, and deals in a portfolio of mortgage revenue bonds (MRBs) that are issued to provide construction or permanent financing for multifamily and student housing, and residential and commercial properties. It operates through four segments: Mortgage Revenue Bond Investments, MF Properties, Public housing Capital Fund Trust, and Other Investments. As of December 31, 2017, the company owned 87 MRBs, of which various bonds were issued by state and local housing authorities in order to provide construction or permanent financing for 63 residential properties comprising a total of 10,666 rental units located in 14 states in the United States. America First Capital Associates Limited Partnership Two serves as the general partner of the company. America First Multifamily Investors, L.P. was founded in 1998 and is based in Omaha, Nebraska.
WMIH Company Profile
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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