Head-To-Head Analysis: Stonegate Mortgage (SGM) versus Its Competitors

Stonegate Mortgage (NYSE: SGM) is one of 28 publicly-traded companies in the “Consumer Lending” industry, but how does it contrast to its rivals? We will compare Stonegate Mortgage to similar businesses based on the strength of its dividends, risk, institutional ownership, earnings, profitability, analyst recommendations and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Stonegate Mortgage and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stonegate Mortgage 0 0 0 0 N/A
Stonegate Mortgage Competitors 170 690 1079 54 2.51

As a group, “Consumer Lending” companies have a potential upside of 24.36%. Given Stonegate Mortgage’s rivals higher probable upside, analysts clearly believe Stonegate Mortgage has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

44.3% of Stonegate Mortgage shares are held by institutional investors. Comparatively, 78.7% of shares of all “Consumer Lending” companies are held by institutional investors. 44.5% of Stonegate Mortgage shares are held by company insiders. Comparatively, 14.1% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Stonegate Mortgage -13.22% -6.70% -1.57%
Stonegate Mortgage Competitors -122.80% -80.48% -0.65%

Risk & Volatility

Stonegate Mortgage has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Stonegate Mortgage’s rivals have a beta of 1.46, indicating that their average stock price is 46% more volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Stonegate Mortgage N/A N/A 6.89
Stonegate Mortgage Competitors $2.77 billion $388.84 million 77.49

Stonegate Mortgage’s rivals have higher revenue and earnings than Stonegate Mortgage. Stonegate Mortgage 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.

Summary

Stonegate Mortgage rivals beat Stonegate Mortgage on 5 of the 8 factors compared.

Stonegate Mortgage Company Profile

Stonegate Mortgage Corporation is a non-bank mortgage company. The Company is focused on originating, financing and servicing the United States residential mortgage loans. The Company’s segments include Originations, Servicing, Financing and Other. The Originations segment primarily originates and sells residential mortgage loans, which conform to the underwriting guidelines of the government sponsored enterprises and government agencies, and non-agency whole loan investors. The Servicing segment includes loan administration, collection and default activities, including the collection and remittance of loan payments, responding to customer inquiries, collection of principal and interest payments, holding custodial funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors and modifying loans. The Financing segment includes warehouse-lending activities to correspondent customers by the Company’s subsidiary, NattyMac, LLC.

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