Analyzing Walter Investment Management Corp. (WAC) & Its Rivals

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

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 stock will outperform the market over the long term.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
Walter Investment Management Corp. $995.72 million -$833.85 million -0.08
Walter Investment Management Corp. Competitors $443.80 million $3.54 million 10.44

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.

Volatility and Risk

Walter Investment Management Corp. has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, Walter Investment Management Corp.’s rivals have a beta of 0.88, indicating that their average stock price is 12% less volatile than the S&P 500.

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 14.62% -27.77% 0.83%

Analyst Recommendations

This is a summary of recent recommendations for Walter Investment Management Corp. and its rivals, as reported 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 111 458 500 13 2.38

Walter Investment Management Corp. currently has a consensus price target of $1.13, indicating a potential upside of 150.00%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 0.00%. Given Walter Investment Management Corp.’s higher possible upside, equities research analysts plainly believe Walter Investment Management Corp. is more favorable than its rivals.

Summary

Walter Investment Management Corp. rivals beat Walter Investment Management Corp. on 8 of the 12 factors compared.

About Walter Investment Management Corp.

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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