UWM (NYSE:UWMC – Get Free Report) and Acacia Research (NASDAQ:ACTG – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Earnings and Valuation
This table compares UWM and Acacia Research”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 | 0.70 | $27.38 million | $0.02 | 69.00 |
| Acacia Research | $285.23 million | 1.43 | $21.68 million | ($0.18) | -23.17 |
UWM has higher revenue and earnings than Acacia Research. Acacia Research is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares UWM and Acacia Research’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UWM | 0.55% | 4.29% | 0.32% |
| Acacia Research | -6.52% | 1.68% | 1.24% |
Insider and Institutional Ownership
53.6% of UWM shares are held by institutional investors. Comparatively, 86.7% of Acacia Research shares are held by institutional investors. 80.9% of UWM shares are held by company insiders. Comparatively, 1.7% of Acacia Research shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for UWM and Acacia Research, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UWM | 1 | 10 | 4 | 0 | 2.20 |
| Acacia Research | 1 | 0 | 1 | 0 | 2.00 |
UWM presently has a consensus price target of $2.45, suggesting a potential upside of 77.21%. Acacia Research has a consensus price target of $6.00, suggesting a potential upside of 43.88%. Given UWM’s stronger consensus rating and higher probable upside, research analysts clearly believe UWM is more favorable than Acacia Research.
Volatility & Risk
UWM has a beta of 1.82, suggesting that its share price is 82% more volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Summary
UWM beats Acacia Research on 11 of the 14 factors compared between the two stocks.
About UWM
UWM Holdings Corporation operates United Wholesale Mortgage, a mortgage lender that works through independent mortgage brokers rather than originating loans directly for consumers. The company provides residential mortgage products for home purchases and refinancings, along with technology and operational support to help brokers guide borrowers through the lending process. Its offerings include conventional, government-backed and jumbo home loans. UWM serves brokers and borrowers across the United States, using its wholesale model to connect mortgage professionals with loan processing, underwriting and closing services.
About Acacia Research
Acacia Research Corporation is an investment and intellectual property company headquartered in Irvine, California. The company acquires businesses, assets and patent portfolios that it believes have the potential to generate value through licensing, monetization, operational improvement or strategic transactions. Historically, Acacia has been primarily known for its patent licensing business. Through subsidiaries and affiliated entities, it has acquired rights to patented technologies, worked with inventors and patent owners, and pursued licensing agreements with companies that use those technologies.
Receive News & Ratings for UWM Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for UWM and related companies with MarketBeat.com's FREE daily email newsletter.
