UWM (UWMC) & Its Rivals Critical Analysis

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

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

Profitability

This table compares UWM and its peers’ 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%

Volatility & Risk

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

Dividends

UWM pays an annual dividend of $0.40 per share and has a dividend yield of 9.9%. 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 2.9% and pay out 40.3% of their earnings in the form of a dividend. UWM is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
UWM	$2.16 billion	$14.40 million	-31.12
UWM Competitors	$18.36 billion	$1.82 billion	-69.90

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

Analyst Ratings

This is a summary of recent recommendations for UWM and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	0	5	2	0	2.29
UWM Competitors	152	677	983	15	2.47

UWM presently has a consensus price target of $6.86, suggesting a potential upside of 69.52%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 25.24%. Given UWM’s higher possible upside, analysts plainly believe UWM is more favorable than its peers.

Summary

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

About UWM

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.