Analyzing Chime Financial (NASDAQ:CHYM) & Walker & Dunlop (NYSE:WD)

Walker & Dunlop (NYSE:WD) and Chime Financial (NASDAQ:CHYM) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, earnings, profitability, analyst recommendations and risk.

Profitability

This table compares Walker & Dunlop and Chime Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walker & Dunlop	2.94%	7.25%	2.31%
Chime Financial	-0.74%	-1.28%	-0.92%

Insider and Institutional Ownership

81.0% of Walker & Dunlop shares are owned by institutional investors. 4.0% of Walker & Dunlop shares are owned by company insiders. Comparatively, 12.3% of Chime Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Walker & Dunlop and Chime Financial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walker & Dunlop	1	0	5	0	2.67
Chime Financial	1	3	17	3	2.92

Walker & Dunlop presently has a consensus target price of $59.75, indicating a potential upside of 72.04%. Chime Financial has a consensus target price of $36.38, indicating a potential upside of 26.02%. Given Walker & Dunlop’s higher possible upside, research analysts plainly believe Walker & Dunlop is more favorable than Chime Financial.

Valuation and Earnings

This table compares Walker & Dunlop and Chime Financial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Walker & Dunlop	$1.23 billion	0.97	$57.08 million	$1.12	31.01
Chime Financial	$2.46 billion	4.45	-$1.01 billion	($0.07)	-412.43

Walker & Dunlop has higher earnings, but lower revenue than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Walker & Dunlop, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Walker & Dunlop has a beta of 1.52, meaning that its stock price is 52% more volatile than the S&P 500. Comparatively, Chime Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.

Summary

Walker & Dunlop beats Chime Financial on 9 of the 15 factors compared between the two stocks.

About Walker & Dunlop

Walker & Dunlop, Inc. is a holding company, which engages in the provision of commercial real estate and finance services. It operates through the following segments: Capital Markets, Servicing and Asset Management, and Corporate. The Capital Markets segment offers a comprehensive range of commercial real estate finance products to customers. The Servicing and Asset Management segment includes servicing and asset-managing and managing third-party capital investments. The Corporate segment consists primarily of the company’s treasury operations and other corporate-level activities. The company was founded by Oliver Walker and Laird Dunlop in 1937 and is headquartered in Bethesda, MD.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.