Critical Survey: UWM (NYSE:UWMC) & Winland Electronics (OTCMKTS:WELX)

UWM (NYSE:UWMC) and Winland Electronics (OTCMKTS:WELX) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Profitability

This table compares UWM and Winland Electronics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UWM	-1.04%	-6.20%	-0.50%
Winland Electronics	N/A	N/A	N/A

Valuation and Earnings

This table compares UWM and Winland Electronics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UWM	$3.16 billion	0.75	$27.38 million	($0.08)	-18.56
Winland Electronics	$5.81 million	2.19	-$520,000.00	($0.50)	-5.00

UWM has higher revenue and earnings than Winland Electronics. UWM is trading at a lower price-to-earnings ratio than Winland Electronics, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for UWM and Winland Electronics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	2	6	6	0	2.29
Winland Electronics	0	0	0	0	0.00

UWM currently has a consensus price target of $4.01, suggesting a potential upside of 170.28%. Given UWM’s stronger consensus rating and higher probable upside, research analysts plainly believe UWM is more favorable than Winland Electronics.

Institutional and Insider Ownership

53.6% of UWM shares are owned by institutional investors. 80.3% of UWM shares are owned by insiders. Comparatively, 8.1% of Winland Electronics shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

UWM has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Winland Electronics has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Summary

UWM beats Winland Electronics on 9 of the 14 factors compared between the two stocks.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.