Velocity Financial, Inc. (VEL) vs Walker & Dunlop, Inc. (WD)

Velocity Financial, Inc. and Walker & Dunlop, Inc. are both Mortgage Finance companies. Walker & Dunlop, Inc. is the larger, with a market value of $1.4B against $689.0M — 2.0× the size. Walker & Dunlop, Inc. has negative trailing earnings, so its P/E is not meaningful; Velocity Financial, Inc. trades at 6.3×. Velocity Financial, Inc. grew revenue faster over the last twelve months: 32.4% against 0.87%. Velocity Financial, Inc. has the higher net margin (0.00% vs −2.68%) and the lower return on invested capital (−3.59% vs −0.85%). Across the 18 metrics below, Velocity Financial, Inc. leads on 9 and Walker & Dunlop, Inc. on 9.

Valuation

Metric VEL WD Mortgage Finance median
P/E 6.32 n/m 10.24
P/S 2.17 1.03 1.52
P/B 0.90 0.77 0.52
Price to free cash flow 10.24 0.84 4.71
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 15.83% (2.50%) (2.50%)
Free cash flow yield 9.76% 118.72% (9.21%)

Profitability

Metric VEL WD Mortgage Finance median
Gross margin 0.00% 46.45% 81.25%
Operating margin 0.00% 1.91% 1.91%
Net margin 0.00% (2.68%) (1.66%)
Free cash flow margin 0.00% 123.39% (15.01%)
Return on equity 0.00% (1.94%) (1.94%)
Return on assets 0.00% (0.66%) (0.23%)
Return on invested capital (3.59%) (0.85%) 0.00%

Growth

Metric VEL WD Mortgage Finance median
Revenue growth (TTM) 32.40% 0.87% 7.49%
EPS growth (last fiscal year) 43.98% (48.59%) 20.88%
Revenue growth, 5-year CAGR 20.68% 2.64% (11.12%)
Net income growth, 5-year CAGR 0.00% (25.48%) 0.00%

Health

Metric VEL WD Mortgage Finance median
Debt to equity 0.00 0.94 0.94
Current ratio 0.00 0.00 1.07
Net debt to EBITDA 28.41 4.45 15.25

Dividend

Metric VEL WD Mortgage Finance median
Dividend yield — 7.01% 7.01%
Payout ratio — 2.42 —

Size

Metric VEL WD Mortgage Finance median
Market cap 688.95m 1.37b 269.18m

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