Walter Investment Management Corp. (WAC) and Its Rivals Head to Head Review

Walter Investment Management Corp. (NYSE: WAC) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its peers? We will compare Walter Investment Management Corp. to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Valuation & Earnings

This table compares Walter Investment Management Corp. and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Walter Investment Management Corp. $947.12 million N/A -0.09
Walter Investment Management Corp. Competitors $678.45 million $169.32 million 12.17

Walter Investment Management Corp. has higher revenue, but lower earnings than its peers. Walter Investment Management Corp. is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

56.5% of Walter Investment Management Corp. shares are owned by institutional investors. Comparatively, 53.5% of shares of all “Retail & Mortgage Banks” companies are owned by institutional investors. 46.6% of Walter Investment Management Corp. shares are owned by insiders. Comparatively, 12.1% of shares of all “Retail & Mortgage Banks” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Walter Investment Management Corp. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walter Investment Management Corp. -18.10% -796.24% -0.52%
Walter Investment Management Corp. Competitors 14.86% -27.43% 0.88%

Analyst Ratings

This is a summary of recent recommendations for Walter Investment Management Corp. and its peers, as provided 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 109 454 489 12 2.38

Walter Investment Management Corp. presently has a consensus target price of $1.13, indicating a potential upside of 121.94%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 24.86%. Given Walter Investment Management Corp.’s higher possible upside, analysts plainly believe Walter Investment Management Corp. is more favorable than its peers.

Volatility and Risk

Walter Investment Management Corp. has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Walter Investment Management Corp.’s peers have a beta of 0.83, suggesting that their average stock price is 17% less volatile than the S&P 500.

Summary

Walter Investment Management Corp. peers beat Walter Investment Management Corp. on 7 of the 11 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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