Analyzing MCAN Mortgage (OTCMKTS:MAMTF) and Federal Home Loan Mortgage (OTCMKTS:FMCC)

Federal Home Loan Mortgage (OTCMKTS:FMCC) and MCAN Mortgage (OTCMKTS:MAMTF) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings for Federal Home Loan Mortgage and MCAN Mortgage, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Home Loan Mortgage	0	0	1	0	3.00
MCAN Mortgage	0	0	0	0	N/A

Federal Home Loan Mortgage currently has a consensus target price of $2.50, indicating a potential upside of 81.16%. Given Federal Home Loan Mortgage’s higher probable upside, equities research analysts clearly believe Federal Home Loan Mortgage is more favorable than MCAN Mortgage.

Profitability

This table compares Federal Home Loan Mortgage and MCAN Mortgage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Home Loan Mortgage	10.09%	-27.89%	0.35%
MCAN Mortgage	N/A	N/A	N/A

Valuation and Earnings

This table compares Federal Home Loan Mortgage and MCAN Mortgage’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Home Loan Mortgage	$108.05 billion	N/A	$10.54 billion	($0.03)	-46.00
MCAN Mortgage	N/A	N/A	N/A	C$1.49	7.74

Federal Home Loan Mortgage has higher revenue and earnings than MCAN Mortgage. Federal Home Loan Mortgage is trading at a lower price-to-earnings ratio than MCAN Mortgage, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.1% of MCAN Mortgage shares are owned by institutional investors. 0.1% of Federal Home Loan Mortgage shares are owned 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.

Summary

Federal Home Loan Mortgage beats MCAN Mortgage on 6 of the 10 factors compared between the two stocks.

About Federal Home Loan Mortgage

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.

About MCAN Mortgage

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada. The company engages in the real estate lending and investing activities, including residential mortgage, residential construction, non-residential construction, and commercial loans, as well as portfolio of real estate investments trusts and private investment activities. It also provides term deposits through a network of independent financial agents. The company was formerly known as MCAP Inc. and changed its name to MCAN Mortgage Corporation in September 2006. The company was founded in 1980 and is headquartered in Toronto, Canada.