Fannie Mae (FNMA) versus Its Peers Critical Comparison

Fannie Mae (OTCMKTS:FNMA) is one of 919 public companies in the “Banks” industry, but how does it contrast to its rivals? We will compare Fannie Mae to related businesses based on the strength of its valuation, dividends, risk, analyst recommendations, institutional ownership, earnings and profitability.

Institutional & Insider Ownership

0.0% of Fannie Mae shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 1.0% of Fannie Mae shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Fannie Mae and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	20.14
Fannie Mae Competitors	$9.95 billion	$2.42 billion	20.28

Fannie Mae has higher revenue and earnings than its rivals. Fannie Mae 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.

Profitability

This table compares Fannie Mae and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	5.16%	-88.54%	0.52%
Fannie Mae Competitors	15.66%	9.44%	0.93%

Volatility & Risk

Fannie Mae has a beta of 1.72, indicating that its share price is 72% more volatile than the S&P 500. Comparatively, Fannie Mae’s rivals have a beta of 0.61, indicating that their average share price is 39% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Fannie Mae and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	5	0	0	1.83
Fannie Mae Competitors	7482	30219	27791	1473	2.35

Fannie Mae currently has a consensus price target of $7.30, suggesting a potential upside of 64.79%. As a group, “Banks” companies have a potential upside of 16.78%. Given Fannie Mae’s higher possible upside, analysts plainly believe Fannie Mae is more favorable than its rivals.

Summary

Fannie Mae rivals beat Fannie Mae on 9 of the 13 factors compared.

Fannie Mae Company Profile

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.