Ellington Credit Company (EARN) vs Westwood Holdings Group Inc (WHG)

Ellington Credit Company and Westwood Holdings Group Inc are both Asset Management companies. Westwood Holdings Group Inc is the larger, with a market value of $180.4M against $159.2M — 1.1× the size. Ellington Credit Company trades at the lower P/E: 14.2× against 20.5×. Ellington Credit Company grew revenue faster over the last twelve months: 17.2% against 6.30%. Ellington Credit Company has the higher net margin (13.2% vs 7.73%) and the lower return on invested capital (1.60% vs 3.48%). Both pay a dividend; Ellington Credit Company yields more (16.8% vs 5.07%). Across the 23 metrics below, Westwood Holdings Group Inc leads on 16 and Ellington Credit Company on 7.

Valuation

Metric EARN WHG Asset Management median
P/E 14.20 20.46 14.62
P/S 2.01 1.62 2.97
P/B 0.52 1.29 0.94
Price to free cash flow 12.70 10.16 8.93
EV/EBITDA 27.81 14.45 10.32
EV/Sales 12.20 1.20 5.72
Earnings yield 7.04% 4.89% 4.53%
Free cash flow yield 7.87% 9.84% 4.65%

Profitability

Metric EARN WHG Asset Management median
Gross margin 94.17% 100.00% 100.00%
Operating margin 12.60% 4.66% 33.03%
Net margin 13.21% 7.73% 13.53%
Free cash flow margin 15.86% 16.36% 12.44%
Return on equity 3.99% 6.29% 4.83%
Return on assets 0.00% 5.21% 1.57%
Return on invested capital 1.60% 3.48% 3.04%

Growth

Metric EARN WHG Asset Management median
Revenue growth (TTM) 17.19% 6.30% 6.97%
EPS growth (last fiscal year) (8.87%) 203.85% —
Revenue growth, 5-year CAGR 2.61% 8.47% 12.13%
Net income growth, 5-year CAGR (21.61%) 0.00% 0.00%

Health

Metric EARN WHG Asset Management median
Debt to equity 2.91 0.00 0.42
Current ratio 0.14 3.76 1.28
Net debt to EBITDA 50.05 (5.06) 1.06

Dividend

Metric EARN WHG Asset Management median
Dividend yield 16.81% 5.07% 6.92%
Payout ratio 8.00 3.75 0.77

Size

Metric EARN WHG Asset Management median
Market cap 159.17m 180.39m 721.34m

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