Analyzing UWM (NYSE:UWMC) and Forge Global (NYSE:FRGE)

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

Volatility & Risk

UWM has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Forge Global has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500.

Valuation and Earnings

This table compares UWM and Forge Global”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UWM	$3.16 billion	0.97	$27.38 million	$0.27	7.10
Forge Global	$92.88 million	6.71	-$66.33 million	($5.20)	-8.65

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

Analyst Recommendations

This is a summary of current recommendations and price targets for UWM and Forge Global, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	1	7	6	0	2.36
Forge Global	1	4	0	0	1.80

UWM currently has a consensus price target of $4.65, indicating a potential upside of 142.69%. Forge Global has a consensus price target of $45.00, indicating a potential upside of 0.00%. Given UWM’s stronger consensus rating and higher probable upside, analysts plainly believe UWM is more favorable than Forge Global.

Profitability

This table compares UWM and Forge Global’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UWM	1.92%	19.01%	1.85%
Forge Global	-71.87%	-29.06%	-24.63%

Insider and Institutional Ownership

53.6% of UWM shares are owned by institutional investors. Comparatively, 40.7% of Forge Global shares are owned by institutional investors. 80.3% of UWM shares are owned by insiders. Comparatively, 4.5% of Forge Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

UWM beats Forge Global on 12 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 Forge Global

Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.