Critical Survey: Fannie Mae (OTCMKTS:FNMA) vs. Auburn National Bancorporation (NASDAQ:AUBN)

Fannie Mae (OTCMKTS:FNMA) and Auburn National Bancorporation (NASDAQ:AUBN) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations for Fannie Mae and Auburn National Bancorporation, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	4	0	1	2.17
Auburn National Bancorporation	0	1	0	0	2.00

Fannie Mae currently has a consensus price target of $10.70, indicating a potential upside of 132.61%. Given Fannie Mae’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fannie Mae is more favorable than Auburn National Bancorporation.

Profitability

This table compares Fannie Mae and Auburn National Bancorporation’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	4.59%	-76.66%	0.51%
Auburn National Bancorporation	18.60%	9.10%	0.81%

Earnings & Valuation

This table compares Fannie Mae and Auburn National Bancorporation”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fannie Mae	$159.17 billion	0.03	$14.36 billion	$0.04	115.00
Auburn National Bancorporation	$34.26 million	2.77	$7.26 million	$2.41	11.31

Fannie Mae has higher revenue and earnings than Auburn National Bancorporation. Auburn National Bancorporation is trading at a lower price-to-earnings ratio than Fannie Mae, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Fannie Mae has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Auburn National Bancorporation has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Fannie Mae shares are held by institutional investors. Comparatively, 39.5% of Auburn National Bancorporation shares are held by institutional investors. 1.0% of Fannie Mae shares are held by company insiders. Comparatively, 18.7% of Auburn National Bancorporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

About Fannie Mae

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.

About Auburn National Bancorporation

Auburn National Bancorporation, Inc. operates as the bank holding company for AuburnBank that provides various banking products and services in East Alabama. The company offers checking, savings, and transaction deposit accounts, as well as certificates of deposit. It also provides commercial, financial, agricultural, real estate construction, and consumer loan products; and other financial services. In addition, the company offers automated teller services; debit cards; online banking, bill payment, and other electronic banking services; and safe deposit boxes. Auburn National Bancorporation, Inc. was founded in 1907 and is headquartered in Auburn, Alabama.