Walter Investment Management Corp. (WAC) & Its Peers Head to Head Analysis

Walter Investment Management Corp. (NYSE: WAC) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it compare to its rivals? We will compare Walter Investment Management Corp. to related businesses based on the strength of its dividends, analyst recommendations, profitability, risk, earnings, valuation and institutional ownership.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Walter Investment Management Corp. and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walter Investment Management Corp. 1 1 0 0 1.50
Walter Investment Management Corp. Competitors 110 458 498 13 2.38

Walter Investment Management Corp. presently has a consensus price target of $1.13, indicating a potential upside of 156.97%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 21.69%. Given Walter Investment Management Corp.’s higher probable upside, analysts clearly believe Walter Investment Management Corp. is more favorable than its rivals.

Valuation & Earnings

This table compares Walter Investment Management Corp. and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Walter Investment Management Corp. $947.12 million N/A -0.07
Walter Investment Management Corp. Competitors $678.45 million $169.32 million 11.33

Walter Investment Management Corp. has higher revenue, but lower earnings than its rivals. Walter Investment Management Corp. is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

56.7% of Walter Investment Management Corp. shares are held by institutional investors. Comparatively, 53.6% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 46.6% of Walter Investment Management Corp. shares are held by company insiders. Comparatively, 12.1% of shares of all “Retail & Mortgage Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Walter Investment Management Corp. and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walter Investment Management Corp. -18.10% -796.24% -0.52%
Walter Investment Management Corp. Competitors 14.81% -27.39% 0.88%

Risk and Volatility

Walter Investment Management Corp. has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Walter Investment Management Corp.’s rivals have a beta of 0.85, indicating that their average stock price is 15% less volatile than the S&P 500.

Summary

Walter Investment Management Corp. rivals beat Walter Investment Management Corp. on 7 of the 11 factors compared.

Walter Investment Management Corp. Company Profile

Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. The Company operates through three segments: Servicing, Originations and Reverse Mortgage. The Servicing segment consists of operations that perform servicing for third-party credit owners of mortgage loans, as well as its own mortgage loan portfolio. The Servicing segment also includes Insurance, and Loans and Residuals businesses. The Originations segment consists of operations that originate and purchase mortgage loans that are intended for sale to third parties. The Reverse Mortgage segment consists of operations which purchases and originates home equity conversion mortgage that are securitized, but remain on the consolidated balance sheet as collateral for secured borrowings.

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