Critical Analysis: WMIH (COOP) vs. Its Rivals

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

Valuation and Earnings

This table compares WMIH and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WMIH $7.89 million $25.88 million 119.58
WMIH Competitors $4.39 billion $643.50 million 16.12

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

Insider & Institutional Ownership

53.2% of shares of all “Nondepository credit institutions” companies are held by institutional investors. 1.7% of WMIH shares are held by company insiders. Comparatively, 18.2% of shares of all “Nondepository credit institutions” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

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

Profitability

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

Net Margins Return on Equity Return on Assets
WMIH 183.04% 160.21% 19.21%
WMIH Competitors 15.69% 18.71% -0.35%

Analyst Recommendations

This is a summary of current recommendations for WMIH and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WMIH 0 2 1 0 2.33
WMIH Competitors 204 809 1048 51 2.45

WMIH currently has a consensus price target of $20.50, indicating a potential upside of 42.86%. As a group, “Nondepository credit institutions” companies have a potential upside of 33.83%. Given WMIH’s higher possible upside, analysts plainly believe WMIH is more favorable than its rivals.

Summary

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

WMIH Company Profile

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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