UWM Holdings Corporation (UWMC) vs Velocity Financial, Inc. (VEL)

UWM Holdings Corporation and Velocity Financial, Inc. are both Mortgage Finance companies. UWM Holdings Corporation is the larger, with a market value of $2.0B against $608.0M — 3.2× the size. UWM Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Velocity Financial, Inc. trades at 5.6×. Velocity Financial, Inc. grew revenue faster over the last twelve months: 32.4% against 3.22%. Velocity Financial, Inc. has the higher net margin (0.00% vs −1.66%) and the lower return on invested capital (0.00% vs 1.91%). Across the 20 metrics below, Velocity Financial, Inc. leads on 14 and UWM Holdings Corporation on 6.

Valuation

Metric UWMC VEL Mortgage Finance median
P/E n/m 5.56 7.11
P/S 0.18 1.89 1.54
P/B 0.42 0.82 0.53
Price to free cash flow n/m 6.59 6.59
EV/EBITDA 27.85 7.84 22.03
EV/Sales 6.51 (0.71) 5.95
Earnings yield (6.56%) 17.98% 2.09%
Free cash flow yield (798.75%) 15.17% (16.97%)

Profitability

Metric UWMC VEL Mortgage Finance median
Gross margin 81.01% 0.00% 84.40%
Operating margin 20.72% 0.00% 12.51%
Net margin (1.66%) 0.00% (0.83%)
Free cash flow margin (147.01%) 0.00% (45.06%)
Return on equity (2.72%) 16.02% (1.16%)
Return on assets (0.23%) 1.47% 0.38%
Return on invested capital 1.91% 0.00% 0.36%

Growth

Metric UWMC VEL Mortgage Finance median
Revenue growth (TTM) 3.22% 32.40% 11.44%
EPS growth (last fiscal year) (7.69%) 43.98% —
Revenue growth, 5-year CAGR (13.42%) 20.68% (11.16%)
Net income growth, 5-year CAGR (61.84%) 0.00% 0.00%

Health

Metric UWMC VEL Mortgage Finance median
Debt to equity 14.86 9.29 1.22
Current ratio 1.64 42.53 1.38
Net debt to EBITDA 15.25 28.41 9.85

Dividend

Metric UWMC VEL Mortgage Finance median
Dividend yield 5.81% — 5.81%
Payout ratio 5.71 0.00 0.00

Size

Metric UWMC VEL Mortgage Finance median
Market cap 1.96b 608.01m 214.95m

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