America First Multifamily Investors, L.P. (NASDAQ: ATAX) and Walker & Dunlop (NYSE:WD) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility and Risk

America First Multifamily Investors, L.P. has a beta of 0.43, suggesting that its share price is 57% less volatile than the S&P 500. Comparatively, Walker & Dunlop has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Profitability

This table compares America First Multifamily Investors, L.P. and Walker & Dunlop’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America First Multifamily Investors, L.P. 33.34% 6.63% 2.09%
Walker & Dunlop 21.91% 22.86% 5.38%

Earnings and Valuation

This table compares America First Multifamily Investors, L.P. and Walker & Dunlop’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
America First Multifamily Investors, L.P. N/A N/A N/A $0.32 19.38
Walker & Dunlop $649.05 million 2.26 $142.17 million $4.55 10.32

Walker & Dunlop has higher revenue and earnings than America First Multifamily Investors, L.P.. Walker & Dunlop is trading at a lower price-to-earnings ratio than America First Multifamily Investors, L.P., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for America First Multifamily Investors, L.P. and Walker & Dunlop, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America First Multifamily Investors, L.P. 0 0 1 0 3.00
Walker & Dunlop 0 2 1 0 2.33

America First Multifamily Investors, L.P. currently has a consensus price target of $6.00, indicating a potential downside of 3.23%. Walker & Dunlop has a consensus price target of $44.00, indicating a potential downside of 6.30%. Given America First Multifamily Investors, L.P.’s stronger consensus rating and higher probable upside, equities analysts plainly believe America First Multifamily Investors, L.P. is more favorable than Walker & Dunlop.

Institutional & Insider Ownership

6.7% of America First Multifamily Investors, L.P. shares are held by institutional investors. Comparatively, 77.2% of Walker & Dunlop shares are held by institutional investors. 1.3% of America First Multifamily Investors, L.P. shares are held by insiders. Comparatively, 11.7% of Walker & Dunlop shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

America First Multifamily Investors, L.P. pays an annual dividend of $0.50 per share and has a dividend yield of 8.1%. Walker & Dunlop does not pay a dividend. America First Multifamily Investors, L.P. pays out 156.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Walker & Dunlop beats America First Multifamily Investors, L.P. on 8 of the 12 factors compared between the two stocks.

About America First Multifamily Investors, L.P.

America First Multifamily Investors, L.P. is engaged in acquiring, holding, selling and dealing with a portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for multifamily and student housing (collectively Residential Properties) and commercial properties. Its segments are Mortgage Revenue Bond Investments, MF Properties, Public Housing Capital Fund Trusts and mortgage-backed securities (MBS) Investments. Its Mortgage Revenue Bond Investments segment consists of its portfolio of mortgage revenue bonds, which have been issued to provide construction and/or permanent financing for the residential properties and a commercial property. The MF Properties segment consists of indirect equity interests in multifamily, student housing, and senior citizen residential properties, which are not financed by mortgage revenue bonds held by the Company, but which it intends to finance by such bonds through a restructuring.

About Walker & Dunlop

Walker & Dunlop, Inc. is a holding company, which conducts its operations through Walker & Dunlop, LLC. The Company provides commercial real estate financial products and services primarily to developers and owners of multifamily properties. The Company originates, sells and services a range of multifamily and other commercial real estate financing products, including Multifamily Finance, Federal Housing Administration (FHA) Finance, Capital Markets, and Proprietary Capital. It originates and sells loans through the programs of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the government-sponsored enterprises (GSEs)), the Government National Mortgage Association (Ginnie Mae) and the Federal Housing Administration, a division of the United States Department of Housing and Urban Development (together with Ginnie Mae, HUD).

Receive News & Ratings for America First Multifamily Investors L.P. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for America First Multifamily Investors L.P. and related companies with Analyst Ratings Network's FREE daily email newsletter.