Income Opportunity Realty Investors, Inc. (IOR) vs Velocity Financial, Inc. (VEL)

Income Opportunity Realty Investors, Inc. and Velocity Financial, Inc. are both Mortgage Finance companies. Velocity Financial, Inc. is the larger, with a market value of $608.0M against $74.1M — 8.2× the size. Velocity Financial, Inc. trades at the lower P/E: 5.6× against 19.8×. Across the 15 metrics below, Velocity Financial, Inc. leads on 8 and Income Opportunity Realty Investors, Inc. on 7.

Valuation

Metric IOR VEL Mortgage Finance median
P/E 19.82 5.56 7.11
P/S 116.00 1.89 1.54
P/B 0.58 0.82 0.53
Price to free cash flow 3.52 6.59 6.59
EV/EBITDA n/m 7.84 22.03
EV/Sales 115.95 (0.71) 5.95
Earnings yield 5.05% 17.98% 2.09%
Free cash flow yield 28.43% 15.17% (16.97%)

Profitability

Metric IOR VEL Mortgage Finance median
Gross margin 0.00% 0.00% 84.40%
Operating margin 0.00% 0.00% 12.51%
Net margin 0.00% 0.00% (0.83%)
Free cash flow margin 0.00% 0.00% (45.06%)
Return on equity 2.96% 16.02% (1.16%)
Return on assets 2.96% 1.47% 0.38%
Return on invested capital (0.19%) 0.00% 0.36%

Growth

Metric IOR VEL Mortgage Finance median
Revenue growth (TTM) — 32.40% 11.44%
EPS growth (last fiscal year) (14.04%) 43.98% —
Revenue growth, 5-year CAGR — 20.68% (11.16%)
Net income growth, 5-year CAGR (1.09%) 0.00% 0.00%

Health

Metric IOR VEL Mortgage Finance median
Debt to equity 0.00 9.29 1.22
Current ratio 31,909.00 42.53 1.38
Net debt to EBITDA 0.02 28.41 9.85

Dividend

Metric IOR VEL Mortgage Finance median
Dividend yield — — 5.81%
Payout ratio 0.00 0.00 0.00

Size

Metric IOR VEL Mortgage Finance median
Market cap 74.05m 608.01m 214.95m

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