Walter Investment Management Corp. (NYSE: WAC) is one of 27 public companies in the “Retail & Mortgage Banks” industry, but how does it compare to its rivals? We will compare Walter Investment Management Corp. to similar businesses based on the strength of its profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Institutional & Insider Ownership

56.6% of Walter Investment Management Corp. shares are held by institutional investors. Comparatively, 52.5% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 46.6% of Walter Investment Management Corp. shares are held by insiders. Comparatively, 11.6% of shares of all “Retail & Mortgage Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Walter Investment Management Corp. has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500. Comparatively, Walter Investment Management Corp.’s rivals have a beta of 0.83, meaning that their average share price is 17% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue NetIncome Price/Earnings Ratio
Walter Investment Management Corp. $995.72 million -$833.85 million -0.06
Walter Investment Management Corp. Competitors $422.55 million $4.08 million 225.01

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.

Analyst Ratings

This is a breakdown of recent ratings and target prices 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 112 465 507 14 2.39

Walter Investment Management Corp. presently has a consensus target price of $1.13, indicating a potential upside of 188.46%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 24.04%. Given Walter Investment Management Corp.’s higher possible upside, analysts clearly believe Walter Investment Management Corp. is more favorable than its rivals.

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. -22.21% -796.24% -0.70%
Walter Investment Management Corp. Competitors 17.37% -29.95% 1.05%

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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