Federal Agricultural Mortgage Corporation (AGM) vs The Western Union Company (WU)

Federal Agricultural Mortgage Corporation and The Western Union Company are both Credit Services companies. Federal Agricultural Mortgage Corporation and The Western Union Company are of similar size ($2.2B and $2.1B). The Western Union Company trades at the lower P/E: 6.5× against 10.8×. Federal Agricultural Mortgage Corporation grew revenue faster over the last twelve months: 7.27% against −2.12%. Federal Agricultural Mortgage Corporation has the higher net margin (11.6% vs 8.32%) and the lower return on invested capital (5.67% vs 13.3%). Both pay a dividend; The Western Union Company yields more (13.6% vs 3.18%). Across the 21 metrics below, Federal Agricultural Mortgage Corporation leads on 12 and The Western Union Company on 9.

Valuation

Metric AGM WU Credit Services median
P/E 10.79 6.46 8.96
P/S 1.25 0.54 1.00
P/B 1.72 2.43 1.23
Price to free cash flow 6.89 7.82 2.55
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 9.27% 15.48% 7.17%
Free cash flow yield 14.51% 12.79% 11.75%

Profitability

Metric AGM WU Credit Services median
Gross margin 25.89% 34.14% 76.61%
Operating margin 0.00% 14.23% 0.34%
Net margin 11.62% 8.32% 8.35%
Free cash flow margin 18.14% 6.88% 8.73%
Return on equity 16.79% 36.76% 9.05%
Return on assets 0.55% 4.21% 1.94%
Return on invested capital 5.67% 13.32% 4.56%

Growth

Metric AGM WU Credit Services median
Revenue growth (TTM) 7.27% (2.12%) 4.49%
EPS growth (last fiscal year) 1.09% (44.53%) 21.94%
Revenue growth, 5-year CAGR 25.34% (3.48%) 9.22%
Net income growth, 5-year CAGR 13.97% (7.66%) 0.00%

Health

Metric AGM WU Credit Services median
Debt to equity 1.23 3.24 0.69
Current ratio 0.56 0.00 1.26
Net debt to EBITDA 0.00 1.78 0.11

Dividend

Metric AGM WU Credit Services median
Dividend yield 3.18% 13.60% 1.64%
Payout ratio 0.34 0.90 0.21

Size

Metric AGM WU Credit Services median
Market cap 2.09b 2.19b 759.73m

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