Freddie Mac (FMCC) and The Competition Head to Head Analysis

Freddie Mac (OTCMKTS:FMCC) is one of 919 public companies in the “Banks” industry, but how does it weigh in compared to its rivals? We will compare Freddie Mac to related businesses based on the strength of its analyst recommendations, institutional ownership, earnings, risk, profitability, dividends and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freddie Mac	9.73%	-121.95%	0.38%
Freddie Mac Competitors	15.66%	9.44%	0.93%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Freddie Mac and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freddie Mac	1	2	1	1	2.40
Freddie Mac Competitors	7464	30192	27759	1465	2.35

Freddie Mac currently has a consensus target price of $8.38, suggesting a potential upside of 67.50%. As a group, “Banks” companies have a potential upside of 15.52%. Given Freddie Mac’s stronger consensus rating and higher probable upside, equities analysts clearly believe Freddie Mac is more favorable than its rivals.

Risk and Volatility

Freddie Mac has a beta of 1.75, suggesting that its share price is 75% more volatile than the S&P 500. Comparatively, Freddie Mac’s rivals have a beta of 0.52, suggesting that their average share price is 48% less volatile than the S&P 500.

Institutional and Insider Ownership

47.8% of shares of all “Banks” companies are held by institutional investors. 0.1% of Freddie Mac shares are held by insiders. Comparatively, 9.8% of shares of all “Banks” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Freddie Mac and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Freddie Mac	$129.82 billion	$10.73 billion	250.00
Freddie Mac Competitors	$9.95 billion	$2.42 billion	17.38

Freddie Mac has higher revenue and earnings than its rivals. Freddie Mac 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.

Summary

Freddie Mac beats its rivals on 7 of the 13 factors compared.

About Freddie Mac

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.