Rocket Companies, Inc. (RKT) vs Walker & Dunlop, Inc. (WD)

Rocket Companies, Inc. and Walker & Dunlop, Inc. are both Mortgage Finance companies. Rocket Companies, Inc. is the larger, with a market value of $31.4B against $1.1B — 27.5× the size. Walker & Dunlop, Inc. trades at the lower P/E: 29.1× against 71.9×. Rocket Companies, Inc. grew revenue faster over the last twelve months: 98.6% against 8.01%. Rocket Companies, Inc. has the higher net margin (4.77% vs 2.84%) and the lower return on invested capital (0.87% vs 0.99%). Only Walker & Dunlop, Inc. pays a dividend (8.31%). Across the 20 metrics below, Rocket Companies, Inc. leads on 11 and Walker & Dunlop, Inc. on 9.

Valuation

Metric RKT WD Mortgage Finance median
P/E 71.87 29.12 6.65
P/S 3.10 0.84 1.42
P/B 1.30 0.63 0.46
Price to free cash flow 194.75 n/m 6.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.39% 3.43% 2.41%
Free cash flow yield 0.51% (12.98%) (19.29%)

Profitability

Metric RKT WD Mortgage Finance median
Gross margin 100.00% 47.09% 84.40%
Operating margin 15.84% 9.18% 12.51%
Net margin 4.77% 2.84% (0.83%)
Free cash flow margin 1.59% (10.21%) (45.06%)
Return on equity 3.04% 2.10% (1.16%)
Return on assets 1.03% 0.76% 0.38%
Return on invested capital 0.87% 0.99% 0.36%

Growth

Metric RKT WD Mortgage Finance median
Revenue growth (TTM) 98.61% 8.01% 11.44%
EPS growth (last fiscal year) (123.81%) (48.59%) 6.60%
Revenue growth, 5-year CAGR (15.62%) 2.64% (11.16%)
Net income growth, 5-year CAGR 0.00% (25.48%) 0.00%

Health

Metric RKT WD Mortgage Finance median
Debt to equity 1.16 1.28 1.22
Current ratio 4.85 0.00 1.38
Net debt to EBITDA 42.57 4.45 9.85

Dividend

Metric RKT WD Mortgage Finance median
Dividend yield 0.00% 8.31% 8.31%
Payout ratio 0.00 2.42 —

Size

Metric RKT WD Mortgage Finance median
Market cap 31.35b 1.14b 198.15m

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