Financial Review: UWM (UWMC) and Its Peers

UWM (NYSE:UWMC) is one of 19 public companies in the “FIN – MTG&REL SVS” industry, but how does it contrast to its rivals? We will compare UWM to related companies based on the strength of its analyst recommendations, risk, institutional ownership, valuation, earnings, dividends and profitability.

Institutional and Insider Ownership

53.6% of UWM shares are held by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are held by institutional investors. 87.5% of UWM shares are held by company insiders. Comparatively, 29.5% of shares of all “FIN – MTG&REL SVS” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for UWM and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	0	5	2	0	2.29
UWM Competitors	153	677	984	15	2.47

UWM presently has a consensus price target of $6.86, suggesting a potential upside of 67.04%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 20.16%. Given UWM’s higher possible upside, research analysts clearly believe UWM is more favorable than its rivals.

Valuation and Earnings

This table compares UWM and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UWM	$2.16 billion	$14.40 million	-31.58
UWM Competitors	$18.27 billion	$1.82 billion	-70.27

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

Profitability

This table compares UWM and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UWM	-0.36%	-3.86%	-0.55%
UWM Competitors	-4.16%	-79.30%	-0.70%

Dividends

UWM pays an annual dividend of $0.40 per share and has a dividend yield of 9.7%. UWM pays out -307.7% of its earnings in the form of a dividend. As a group, “FIN – MTG&REL SVS” companies pay a dividend yield of 2.8% and pay out 40.3% of their earnings in the form of a dividend. UWM is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Volatility & Risk

UWM has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, UWM’s rivals have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Summary

UWM beats its rivals on 10 of the 15 factors compared.

UWM Company Profile

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.