Forward Industries (NASDAQ:FWDI) and PennyMac Financial Services (NYSE:PFSI) Head-To-Head Analysis

PennyMac Financial Services (NYSE:PFSI) and Forward Industries (NASDAQ:FWDI) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.

Valuation and Earnings

This table compares PennyMac Financial Services and Forward Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PennyMac Financial Services	$2.05 billion	1.79	$501.08 million	$7.28	9.67
Forward Industries	$18.19 million	26.59	-$166.97 million	$0.12	54.58

PennyMac Financial Services has higher revenue and earnings than Forward Industries. PennyMac Financial Services is trading at a lower price-to-earnings ratio than Forward Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for PennyMac Financial Services and Forward Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PennyMac Financial Services	2	4	4	0	2.20
Forward Industries	1	1	3	0	2.40

PennyMac Financial Services presently has a consensus price target of $104.88, suggesting a potential upside of 48.91%. Forward Industries has a consensus price target of $12.50, suggesting a potential upside of 90.84%. Given Forward Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Forward Industries is more favorable than PennyMac Financial Services.

Risk & Volatility

PennyMac Financial Services has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500. Comparatively, Forward Industries has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500.

Profitability

This table compares PennyMac Financial Services and Forward Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PennyMac Financial Services	17.74%	11.18%	1.65%
Forward Industries	-2,073.82%	-18.05%	-17.03%

Insider and Institutional Ownership

57.9% of PennyMac Financial Services shares are held by institutional investors. 15.2% of PennyMac Financial Services shares are held by insiders. Comparatively, 15.9% of Forward Industries shares are held 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.

Summary

PennyMac Financial Services beats Forward Industries on 9 of the 14 factors compared between the two stocks.

About PennyMac Financial Services

PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. The company operates through three segments: Production, Servicing, and Investment Management. The Production segment is involved in the origination, acquisition, and sale of loans. This segment sources residential conventional and government-insured or guaranteed mortgage loans through correspondent production, consumer direct lending, and broker direct lending. The Servicing segment performs loan servicing for both newly originated loans that are under holding for sale and loans services for others. The segment performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; responds to customer inquiries; provides accounting for principal and interest; holds custodial funds for the payment of property taxes and insurance premiums; counsels delinquent borrowers; and supervising foreclosures and property dispositions, as well as administers loss mitigation activities, such as modification and forbearance programs. The Investment Management segment is involved in sourcing, performing diligence, bidding, and closing investment asset acquisitions; managing correspondent production activities for PennyMac Mortgage Investment Trust; and managing acquired assets. The company was founded in 2008 and is headquartered in Westlake Village, California.

About Forward Industries

Forward Industries, Inc., together with its subsidiaries, designs, markets, and distributes carry and protective solutions primarily for handheld electronic devices. The company operates in three segments: OEM Distribution, Retail Distribution, and Design. The OEM Distribution segment sources and distributes carrying cases and other accessories for medical monitoring and diagnostic kits; and various portable electronic and non-electronic products, such as sporting and recreational products, bar code scanners, GPS devices, tablets, and firearms. The Retail Distribution segment sources and sells smart-enabled furniture and a range of other products through agreements with various retailers, including in stores and online retailer websites. The Design segment provides hardware and software product design and engineering services. The company sells its products to original equipment manufacturers in the Asia-Pacific, the Americas, Europe, the Middle East, and Africa. Forward Industries, Inc. was incorporated in 1961 and is headquartered in Hauppauge, New York.