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

Analyst Ratings

How to Become a New Pot Stock Millionaire

This is a summary of recent ratings and target prices for Walker & Dunlop and PCSB Financial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walker & Dunlop 0 0 2 0 3.00
PCSB Financial 0 0 1 0 3.00

Walker & Dunlop currently has a consensus target price of $55.50, indicating a potential upside of 3.06%. PCSB Financial has a consensus target price of $19.00, indicating a potential downside of 10.55%. Given Walker & Dunlop’s higher possible upside, research analysts clearly believe Walker & Dunlop is more favorable than PCSB Financial.

Profitability

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

Net Margins Return on Equity Return on Assets
Walker & Dunlop 29.66% 21.33% 5.11%
PCSB Financial 3.98% 2.87% 0.49%

Insider & Institutional Ownership

81.2% of Walker & Dunlop shares are held by institutional investors. Comparatively, 40.4% of PCSB Financial shares are held by institutional investors. 11.7% of Walker & Dunlop shares are held by insiders. Comparatively, 1.6% of PCSB Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Walker & Dunlop and PCSB Financial’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walker & Dunlop $711.86 million 2.33 $211.12 million $6.55 8.22
PCSB Financial $45.04 million 8.57 $3.22 million N/A N/A

Walker & Dunlop has higher revenue and earnings than PCSB Financial.

Dividends

Walker & Dunlop pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. PCSB Financial does not pay a dividend. Walker & Dunlop pays out 15.3% of its earnings in the form of a dividend.

Summary

Walker & Dunlop beats PCSB Financial on 10 of the 12 factors compared between the two stocks.

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).

About PCSB Financial

PCSB Financial Corporation will be the holding company of PCSB Bank (the Bank). The Bank is a mutual savings bank. The Bank attracts deposits from the general public and utilizes those funds primarily to originate and purchase residential real estate, commercial real estate and business loans, and to purchase investment securities. As of September 30, 2016, the Bank had consolidated total assets of $1.25 billion, total deposits of $1.12 billion and equity of $111.5 million. The Bank’s provides commercial lending and deposit opportunities for its customers. The Bank operates in 15 locations, offices located in Dutchess, Putnam, Rockland and Westchester Counties in New York. The Bank’s subsidiaries include PCSB Commercial Bank, PCSB Funding Corp. and PCSB Realty Ltd.

Receive News & Ratings for Walker & Dunlop Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Walker & Dunlop and related companies with MarketBeat.com's FREE daily email newsletter.