WMIH (NYSE: ONDK) and On Deck Capital (NYSE:ONDK) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

36.6% of WMIH shares are owned by institutional investors. Comparatively, 77.1% of On Deck Capital shares are owned by institutional investors. 2.8% of WMIH shares are owned by insiders. Comparatively, 21.4% of On Deck Capital shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares WMIH and On Deck Capital’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WMIH $7.89 million 37.35 $25.88 million $0.01 136.00
On Deck Capital $350.95 million 1.61 -$11.53 million ($0.16) -47.19

WMIH has higher earnings, but lower revenue than On Deck Capital. On Deck Capital is trading at a lower price-to-earnings ratio than WMIH, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WMIH and On Deck Capital’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WMIH 229.93% 18.08% 3.40%
On Deck Capital 1.37% 4.25% 1.10%

Risk & Volatility

WMIH has a beta of -1.22, suggesting that its share price is 222% less volatile than the S&P 500. Comparatively, On Deck Capital has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for WMIH and On Deck Capital, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WMIH 2 0 3 0 2.20
On Deck Capital 2 5 1 0 1.88

WMIH currently has a consensus target price of $1.66, indicating a potential upside of 22.06%. On Deck Capital has a consensus target price of $7.83, indicating a potential upside of 3.75%. Given WMIH’s stronger consensus rating and higher probable upside, analysts plainly believe WMIH is more favorable than On Deck Capital.

Summary

WMIH beats On Deck Capital on 10 of the 14 factors compared between the two stocks.

WMIH Company Profile

WMIH Corp., through its subsidiary, WM Mortgage Reinsurance Company, Inc., engages in legacy reinsurance business with respect to mortgage insurance operated in runoff mode. The company was formerly known as WMI Holdings Corp. and changed its name to WMIH Corp. in May 2015. WMIH Corp. was founded in 1889 and is headquartered in Seattle, Washington.

On Deck Capital Company Profile

On Deck Capital, Inc. operates an online platform for small business lending in the United States, Canada, and Australia. It offers term loans and lines of credit. The company was incorporated in 2006 and is headquartered in New York, New York.

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