WMIH (COOP) & Its Peers Critical Review

WMIH (NASDAQ: COOP) is one of 32 public companies in the “Nondepository credit institutions” industry, but how does it compare to its peers? We will compare WMIH to similar companies based on the strength of its earnings, profitability, analyst recommendations, dividends, institutional ownership, risk and valuation.

Analyst Ratings

This is a summary of current ratings and price targets for WMIH and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WMIH 1 1 1 0 2.00
WMIH Competitors 202 804 1042 49 2.45

WMIH presently has a consensus price target of $20.00, indicating a potential upside of 39.18%. As a group, “Nondepository credit institutions” companies have a potential upside of 26.59%. Given WMIH’s higher possible upside, analysts clearly believe WMIH is more favorable than its peers.

Profitability

This table compares WMIH and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WMIH 229.44% 18.07% 3.40%
WMIH Competitors 12.69% -56.76% -7.18%

Earnings & Valuation

This table compares WMIH and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WMIH $7.89 million $25.88 million 119.75
WMIH Competitors $4.39 billion $643.50 million 16.44

WMIH’s peers have higher revenue and earnings than WMIH. WMIH is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Institutional and Insider Ownership

55.0% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 1.7% of WMIH shares are owned by insiders. Comparatively, 16.9% of shares of all “Nondepository credit institutions” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

WMIH has a beta of -0.63, meaning that its share price is 163% less volatile than the S&P 500. Comparatively, WMIH’s peers have a beta of 1.73, meaning that their average share price is 73% more volatile than the S&P 500.

Summary

WMIH peers beat WMIH on 8 of the 13 factors compared.

About WMIH

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. It offers home loan servicers focused on delivering various servicing and lending products, services, and technologies. The company provides technology and data enhanced solutions to homebuyers, home sellers, real estate agents, and mortgage companies. It operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is based in Coppell, Texas.

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