BankUnited (BKU) vs. Walter Investment Management Corp. (WAC) Financial Analysis
BankUnited (NYSE: BKU) and Walter Investment Management Corp. (NYSE:WAC) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Institutional and Insider Ownership
97.7% of BankUnited shares are held by institutional investors. Comparatively, 56.5% of Walter Investment Management Corp. shares are held by institutional investors. 5.1% of BankUnited shares are held by insiders. Comparatively, 46.6% of Walter Investment Management Corp. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current ratings and price targets for BankUnited and Walter Investment Management Corp., as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Walter Investment Management Corp.||1||1||0||0||1.50|
BankUnited presently has a consensus price target of $40.82, suggesting a potential upside of 19.21%. Walter Investment Management Corp. has a consensus price target of $1.13, suggesting a potential upside of 143.98%. Given Walter Investment Management Corp.’s higher possible upside, analysts clearly believe Walter Investment Management Corp. is more favorable than BankUnited.
Risk & Volatility
BankUnited has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Walter Investment Management Corp. has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
BankUnited pays an annual dividend of $0.84 per share and has a dividend yield of 2.5%. Walter Investment Management Corp. does not pay a dividend. BankUnited pays out 37.7% of its earnings in the form of a dividend.
This table compares BankUnited and Walter Investment Management Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Walter Investment Management Corp.||-18.10%||-796.24%||-0.52%|
Earnings and Valuation
This table compares BankUnited and Walter Investment Management Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|BankUnited||$973.23 million||3.76||$238.16 million||$2.23||15.35|
|Walter Investment Management Corp.||$947.12 million||0.02||-$217.78 million||($5.96)||-0.08|
BankUnited has higher revenue and earnings than Walter Investment Management Corp.. Walter Investment Management Corp. is trading at a lower price-to-earnings ratio than BankUnited, indicating that it is currently the more affordable of the two stocks.
BankUnited beats Walter Investment Management Corp. on 12 of the 15 factors compared between the two stocks.
BankUnited, Inc. is the bank holding company of BankUnited (the Bank). The bank is a national banking association. As of December 31, 2016, the Bank provided a range of banking services to individual and corporate customers through 94 banking centers located in 15 Florida counties and six banking centers in the New York metropolitan area. The Bank also provides a range of traditional banking products and services to both its commercial and retail customers. The Company offers a range of lending products, including small business loans, commercial real estate loans, equipment loans and leases, term loans, formula-based loans, municipal and non-profit loans and leases, commercial and mortgage warehouse lines of credit, letters of credit and consumer loans. It offers traditional deposit products, including checking accounts, money market deposit accounts, savings accounts and certificates of deposit with a range of terms and rates.
About Walter Investment Management Corp.
Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. The Company operates through three segments: Servicing, Originations and Reverse Mortgage. The Servicing segment consists of operations that perform servicing for third-party credit owners of mortgage loans, as well as its own mortgage loan portfolio. The Servicing segment also includes Insurance, and Loans and Residuals businesses. The Originations segment consists of operations that originate and purchase mortgage loans that are intended for sale to third parties. The Reverse Mortgage segment consists of operations which purchases and originates home equity conversion mortgage that are securitized, but remain on the consolidated balance sheet as collateral for secured borrowings.
Receive News & Ratings for BankUnited Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for BankUnited Inc. and related companies with Analyst Ratings Network's FREE daily email newsletter.