Fincera (OTCMKTS:YUANF) and Walker & Dunlop (NYSE:WD) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, risk and analyst recommendations.
Risk & Volatility
Fincera has a beta of -0.61, indicating that its stock price is 161% less volatile than the S&P 500. Comparatively, Walker & Dunlop has a beta of 0.96, indicating that its stock price is 4% less volatile than the S&P 500.
This table compares Fincera and Walker & Dunlop’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walker & Dunlop||21.62%||18.54%||6.01%|
Insider & Institutional Ownership
78.3% of Walker & Dunlop shares are owned by institutional investors. 10.4% of Walker & Dunlop shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Fincera pays an annual dividend of $0.30 per share and has a dividend yield of 17.1%. Walker & Dunlop pays an annual dividend of $1.20 per share and has a dividend yield of 1.8%. Walker & Dunlop pays out 23.8% of its earnings in the form of a dividend.
This is a summary of recent ratings and recommmendations for Fincera and Walker & Dunlop, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walker & Dunlop||0||1||4||0||2.80|
Walker & Dunlop has a consensus price target of $65.40, indicating a potential downside of 2.49%. Given Walker & Dunlop’s higher probable upside, analysts clearly believe Walker & Dunlop is more favorable than Fincera.
Earnings & Valuation
This table compares Fincera and Walker & Dunlop’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fincera||$205.74 million||0.42||$40.04 million||N/A||N/A|
|Walker & Dunlop||$725.25 million||2.85||$161.44 million||$5.04||13.31|
Walker & Dunlop has higher revenue and earnings than Fincera.
Walker & Dunlop beats Fincera on 10 of the 13 factors compared between the two stocks.
Fincera Inc. focuses on providing online lending and e-commerce services for small and medium-sized businesses (SMBs) and individuals in China. The company operates in two segments, Internet-Based Financial and E-Commerce Services, and Property Lease and Management. The company's financial services platforms include CeraPay, a revolving credit product that processes and settles transactions between its borrowers and merchants; and CeraVest, a peer-to-peer lending platform that provides short-term financing primarily to SMBs. Its e-commerce products comprise TruShip, an online e-commerce platform for trucking industry merchants; AutoChekk, an e-commerce platform for the passenger vehicle industry; and PingPing, an e-commerce platform for small businesses to establish an online presence. The company also owns and leases office space; and operates and manages Shijiazhuang Hilton hotel in the Kaiyuan Finance Center building. The company was formerly known as AutoChina International Limited and changed its name to Fincera Inc. in July 2015. Fincera Inc. was founded in 1994 and is headquartered in Shijiazhuang, the People's Republic of China. Fincera Inc. is a subsidiary of Honest Best International Ltd.
About Walker & Dunlop
Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate loans for owners and developers of real estate in the United States. The company offers multifamily properties and commercial real estate finance products, such as first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It provides multifamily finance for multifamily, manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae DUS program; and FHA finance, such as construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. The company also acts as an intermediary in the placement of commercial real estate debt between institutional sources of capital, including life insurance companies, investment banks, commercial banks, pension funds, commercial mortgage backed securities (CMBS) issuers, and other institutional investors, as well as owners of various types of commercial real estate. In addition, it advises on capital structure; develops the financing package; facilitates negotiations between its client and institutional sources of capital; coordinates due diligence; and assists in closing the transaction, as well as offers interim loans and CMBS products, and investment sales brokerage services. Further, the company offers underwriting and risk management, servicing and asset management, and direct loan originators and correspondent network services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.
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