Head-To-Head Contrast: Fannie Mae (FNMA) & Its Competitors

Fannie Mae (OTCMKTS:FNMA) is one of 19 publicly-traded companies in the “FIN – MTG&REL SVS” industry, but how does it weigh in compared to its rivals? We will compare Fannie Mae to related businesses based on the strength of its valuation, profitability, earnings, dividends, risk, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

0.0% of Fannie Mae shares are held by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are held by institutional investors. 1.0% of Fannie Mae shares are held by insiders. Comparatively, 30.7% of shares of all “FIN – MTG&REL SVS” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fannie Mae and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	3	1	2	2.57
Fannie Mae Competitors	247	862	1131	34	2.42

Fannie Mae presently has a consensus price target of $12.75, indicating a potential upside of 59.38%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 39.40%. Given Fannie Mae’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Fannie Mae is more favorable than its rivals.

Valuation & Earnings

This table compares Fannie Mae and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	800.00
Fannie Mae Competitors	$19.34 billion	$1.63 billion	87.05

Fannie Mae has higher revenue and earnings than its rivals. Fannie Mae 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.

Profitability

This table compares Fannie Mae and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	4.53%	-65.94%	0.50%
Fannie Mae Competitors	3.75%	-78.66%	0.27%

Risk and Volatility

Fannie Mae has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Fannie Mae’s rivals have a beta of 1.25, suggesting that their average share price is 25% more volatile than the S&P 500.

Summary

Fannie Mae beats its rivals on 10 of the 13 factors compared.

Fannie Mae Company Profile

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.