Analyzing Guild (NYSE:GHLD) & Finance Of America Companies (NYSE:FOA)

Finance Of America Companies (NYSE:FOAGet Rating) and Guild (NYSE:GHLDGet Rating) are both small-cap finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, risk, valuation, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Finance Of America Companies and Guild, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Finance Of America Companies 0 3 0 1 2.50
Guild 0 1 3 0 2.75

Finance Of America Companies currently has a consensus target price of $5.53, indicating a potential upside of 206.94%. Guild has a consensus target price of $15.38, indicating a potential upside of 55.30%. Given Finance Of America Companies’ higher possible upside, analysts plainly believe Finance Of America Companies is more favorable than Guild.

Valuation & Earnings

This table compares Finance Of America Companies and Guild’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Finance Of America Companies $1.74 billion 0.06 -$247.68 million ($6.85) -0.26
Guild $1.58 billion 0.38 $283.77 million $5.39 1.84

Guild has lower revenue, but higher earnings than Finance Of America Companies. Finance Of America Companies is trading at a lower price-to-earnings ratio than Guild, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Finance Of America Companies and Guild’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Finance Of America Companies -25.42% 13.28% 1.04%
Guild 21.62% 19.18% 4.35%

Institutional & Insider Ownership

9.3% of Guild shares are held by institutional investors. 78.0% of Guild shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk and Volatility

Finance Of America Companies has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500. Comparatively, Guild has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.

Summary

Guild beats Finance Of America Companies on 10 of the 13 factors compared between the two stocks.

Finance Of America Companies Company Profile (Get Rating)

Finance of America Companies Inc. operates a consumer lending platform in the United States. The company operates through: Mortgage Originations, Reverse Originations, Commercial Originations, Lender Services, and Portfolio Management segments. It provides residential mortgage loans to the government sponsored entities; government-insured agricultural lending solutions to farmers; product development, loan securitization, loan sales, risk management, asset management, and servicing oversight services to enterprise and third-party funds; and ancillary business services, title agency and title insurance services, mortgage servicing rights valuation and trade brokerage, transactional fulfillment services, mortgage loan third party review or due diligence services, and appraisal and capital management services to residential mortgage, student lending, and commercial lending industry customers. The company was founded in 2013 and is based in Irving, Texas.

Guild Company Profile (Get Rating)

Guild Holdings Company, a mortgage company, originates, sells, and services residential mortgage loans in the United States. The company operates approximately 260 branches with licenses in 49 states. It originates residential mortgages through retail and correspondent channels. The company was incorporated in 1960 and is headquartered in San Diego, California.

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