UWM (UWMC) vs. The Competition Critical Contrast

UWM (NYSE:UWMC) is one of 19 publicly-traded companies in the “FIN – MTG&REL SVS” industry, but how does it compare to its competitors? We will compare UWM to related businesses based on the strength of its dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Volatility and Risk

UWM has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, UWM’s competitors have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Insider & Institutional Ownership

53.6% of UWM shares are owned by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are owned by institutional investors. 87.5% of UWM shares are owned by insiders. Comparatively, 29.5% of shares of all “FIN – MTG&REL SVS” companies 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.

Dividends

UWM pays an annual dividend of $0.40 per share and has a dividend yield of 9.9%. UWM pays out -307.7% of its earnings in the form of a dividend. As a group, “FIN – MTG&REL SVS” companies pay a dividend yield of 2.9% and pay out 40.3% of their earnings in the form of a dividend. UWM is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for UWM and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	0	5	2	0	2.29
UWM Competitors	152	677	983	15	2.47

UWM presently has a consensus target price of $6.86, suggesting a potential upside of 69.52%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 25.24%. Given UWM’s higher probable upside, equities research analysts plainly believe UWM is more favorable than its competitors.

Earnings and Valuation

This table compares UWM and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
UWM	$2.16 billion	$14.40 million	-31.12
UWM Competitors	$18.36 billion	$1.82 billion	-69.90

UWM’s competitors have higher revenue and earnings than UWM. UWM is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares UWM and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UWM	-0.36%	-3.86%	-0.55%
UWM Competitors	-4.16%	-79.30%	-0.70%

Summary

UWM beats its competitors on 10 of the 15 factors compared.

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.