Fannie Mae (OTCMKTS:FNMA – Get Free Report) and Primis Financial (NASDAQ:FRST – Get Free Report) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.
Insider & Institutional Ownership
0.0% of Fannie Mae shares are owned by institutional investors. Comparatively, 75.0% of Primis Financial shares are owned by institutional investors. 1.0% of Fannie Mae shares are owned by company insiders. Comparatively, 10.9% of Primis Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Fannie Mae and Primis Financial”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fannie Mae | $159.17 billion | 0.03 | $14.36 billion | $0.04 | 99.88 |
| Primis Financial | $277.00 million | 1.36 | $61.44 million | $2.16 | 7.05 |
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.
Analyst Ratings
This is a summary of current recommendations and price targets for Fannie Mae and Primis Financial, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fannie Mae | 1 | 4 | 0 | 1 | 2.17 |
| Primis Financial | 0 | 1 | 2 | 1 | 3.00 |
Fannie Mae presently has a consensus target price of $9.70, suggesting a potential upside of 142.80%. Primis Financial has a consensus target price of $17.50, suggesting a potential upside of 14.87%. Given Fannie Mae’s higher probable upside, equities analysts plainly believe Fannie Mae is more favorable than Primis Financial.
Profitability
This table compares Fannie Mae and Primis Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fannie Mae | 4.59% | -76.66% | 0.51% |
| Primis Financial | 19.19% | 5.49% | 0.55% |
Volatility & Risk
Fannie Mae has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Primis Financial has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500.
Summary
Primis Financial beats Fannie Mae on 9 of the 14 factors compared between the two stocks.
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.
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.
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