PennyMac Financial Services, Inc. (PFSI) vs UWM Holdings Corporation (UWMC)

PennyMac Financial Services, Inc. and UWM Holdings Corporation are both Mortgage Finance companies. PennyMac Financial Services, Inc. is the larger, with a market value of $3.4B against $2.0B — 1.7× the size. UWM Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; PennyMac Financial Services, Inc. trades at 8.7×. PennyMac Financial Services, Inc. grew revenue faster over the last twelve months: 25.9% against 3.22%. PennyMac Financial Services, Inc. has the higher net margin (17.7% vs −1.66%) and the higher return on invested capital (2.17% vs 1.91%). Both pay a dividend; UWM Holdings Corporation yields more (5.81% vs 0.89%). Across the 21 metrics below, PennyMac Financial Services, Inc. leads on 14 and UWM Holdings Corporation on 7.

Valuation

Metric PFSI UWMC Mortgage Finance median
P/E 8.66 n/m 7.11
P/S 1.54 0.18 1.54
P/B 0.78 0.42 0.53
Price to free cash flow n/m n/m 6.59
EV/EBITDA 23.26 27.85 22.03
EV/Sales 7.51 6.51 5.95
Earnings yield 11.55% (6.56%) 2.09%
Free cash flow yield (54.63%) (798.75%) (16.97%)

Profitability

Metric PFSI UWMC Mortgage Finance median
Gross margin 78.95% 81.01% 84.40%
Operating margin 27.59% 20.72% 12.51%
Net margin 17.73% (1.66%) (0.83%)
Free cash flow margin (83.74%) (147.01%) (45.06%)
Return on equity 9.38% (2.72%) (1.16%)
Return on assets 1.45% (0.23%) 0.38%
Return on invested capital 2.17% 1.91% 0.36%

Growth

Metric PFSI UWMC Mortgage Finance median
Revenue growth (TTM) 25.90% 3.22% 11.44%
EPS growth (last fiscal year) 59.25% (7.69%) —
Revenue growth, 5-year CAGR (11.20%) (13.42%) (11.16%)
Net income growth, 5-year CAGR (21.18%) (61.84%) 0.00%

Health

Metric PFSI UWMC Mortgage Finance median
Debt to equity 3.22 14.86 1.22
Current ratio 0.38 1.64 1.38
Net debt to EBITDA 18.29 15.25 9.85

Dividend

Metric PFSI UWMC Mortgage Finance median
Dividend yield 0.89% 5.81% 5.81%
Payout ratio 0.16 5.71 0.00

Size

Metric PFSI UWMC Mortgage Finance median
Market cap 3.39b 1.96b 214.95m

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