Fannie Mae (OTCMKTS:FNMA) and Primis Financial (NASDAQ:FRST) Head-To-Head Contrast

Primis Financial (NASDAQ:FRST) and Fannie Mae (OTCMKTS:FNMA) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Earnings & Valuation

This table compares Primis Financial and Fannie Mae”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Primis Financial	$277.00 million	1.36	$61.44 million	$2.16	7.05
Fannie Mae	$159.17 billion	0.03	$14.36 billion	$0.04	99.88

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

Profitability

This table compares Primis Financial and Fannie Mae’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Primis Financial	19.19%	5.49%	0.55%
Fannie Mae	4.59%	-76.66%	0.51%

Analyst Ratings

This is a breakdown of current ratings and price targets for Primis Financial and Fannie Mae, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Primis Financial	0	1	2	1	3.00
Fannie Mae	1	4	0	1	2.17

Primis Financial presently has a consensus target price of $17.50, indicating a potential upside of 14.87%. Fannie Mae has a consensus target price of $9.70, indicating a potential upside of 142.80%. Given Fannie Mae’s higher probable upside, analysts clearly believe Fannie Mae is more favorable than Primis Financial.

Insider and Institutional Ownership

75.0% of Primis Financial shares are owned by institutional investors. Comparatively, 0.0% of Fannie Mae shares are owned by institutional investors. 10.9% of Primis Financial shares are owned by company insiders. Comparatively, 1.0% of Fannie Mae shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Primis Financial has a beta of 0.73, suggesting that its share price is 27% less volatile than the S&P 500. Comparatively, Fannie Mae has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500.

Summary

Primis Financial beats Fannie Mae on 9 of the 14 factors compared between the two stocks.

About Primis Financial

Primis Financial Corp. operates as the bank holding company for Primis Bank that provides a range of financial services to individuals and small and medium sized businesses in the United States. Its deposit products include checking, NOW, savings, and money market accounts, as well as certificates of deposits. The company also provides commercial business and real estate, construction, secured asset based, small business administration, mortgage warehouse lending products, as well as financing for medical, dental, and veterinary businesses; residential mortgage, trust mortgage, home equity lines of credit, secured and unsecured personal, and consumer loans, as well as life insurance premium financing and demand loans. It also offers cash management services comprising investment/sweep, zero balance, and controlled disbursement accounts; and wire transfer, employer/payroll processing, night depository, depository transfer, merchant, ACH origination, and remote deposit capture services. In addition, the company provides debit cards, ATM services, notary services, and mobile and online banking. It operates full-service branches in Virginia and Maryland. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp. Primis Financial Corp. was founded in 2004 and is based in McLean, Virginia.

About Fannie Mae

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.