Walker & Dunlop (NYSE: WD) and Security National Financial (NASDAQ:SNFCA) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.
Risk & Volatility
Walker & Dunlop has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Security National Financial has a beta of -0.26, meaning that its share price is 126% less volatile than the S&P 500.
81.2% of Walker & Dunlop shares are owned by institutional investors. Comparatively, 8.1% of Security National Financial shares are owned by institutional investors. 11.2% of Walker & Dunlop shares are owned by insiders. Comparatively, 18.2% of Security National Financial shares 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.
Earnings & Valuation
This table compares Walker & Dunlop and Security National Financial’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Walker & Dunlop||$711.86 million||2.56||$211.12 million||$4.76||12.43|
|Security National Financial||$276.93 million||0.32||$14.11 million||N/A||N/A|
Walker & Dunlop has higher revenue and earnings than Security National Financial.
This is a summary of recent ratings and recommmendations for Walker & Dunlop and Security National Financial, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walker & Dunlop||0||0||2||0||3.00|
|Security National Financial||0||0||0||0||N/A|
Walker & Dunlop presently has a consensus price target of $55.50, indicating a potential downside of 6.17%. Given Walker & Dunlop’s higher probable upside, research analysts clearly believe Walker & Dunlop is more favorable than Security National Financial.
This table compares Walker & Dunlop and Security National Financial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walker & Dunlop||29.66%||21.33%||5.11%|
|Security National Financial||4.98%||9.80%||1.40%|
Walker & Dunlop pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Security National Financial does not pay a dividend. Walker & Dunlop pays out 21.0% of its earnings in the form of a dividend.
Walker & Dunlop beats Security National Financial on 12 of the 14 factors compared between the two stocks.
About Walker & Dunlop
Walker & Dunlop, Inc. is a holding company, which conducts its operations through Walker & Dunlop, LLC. The Company provides commercial real estate financial products and services primarily to developers and owners of multifamily properties. The Company originates, sells and services a range of multifamily and other commercial real estate financing products, including Multifamily Finance, Federal Housing Administration (FHA) Finance, Capital Markets, and Proprietary Capital. It originates and sells loans through the programs of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the government-sponsored enterprises (GSEs)), the Government National Mortgage Association (Ginnie Mae) and the Federal Housing Administration, a division of the United States Department of Housing and Urban Development (together with Ginnie Mae, HUD).
About Security National Financial
Security National Financial Corporation engages in life insurance, cemetery and mortuary, and mortgage loan businesses. The company's Life Insurance segment engages in selling and servicing life insurance, annuity products, and accident and health insurance. This segment offers various life insurance products, such as funeral plans and interest-sensitive life insurance; other traditional life, accident, and health insurance products; annuity products comprising single premium deferred annuities, flexible premium deferred annuities, and immediate annuities; and diver's accident policies, as well as cedes and assumes certain risks with various authorized unaffiliated reinsurers pursuant to reinsurance treaties. Its Cemetery and Mortuary segment operates eight mortuaries and five cemeteries in the state of Utah, and one cemetery in the state of California. This segment also markets plots, interment vaults, mausoleum crypts, markers, caskets, flowers, and other death care related products; and provides professional services of funeral directors, opening and closing of graves, use of chapels and viewing rooms, and use of automobiles and clothing. The company's Mortgage segment originates and underwrites residential and commercial loans for new construction, existing homes, and real estate projects primarily in Florida, Nevada, Texas, and Utah. It offers mortgage loan products to real estate brokers, independent mortgage loan originators, and investors. Security National Financial Corporation was founded in 1965 and is headquartered in Salt Lake City, Utah.
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