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 $1.3B against $608.0M — 2.1× the size. Velocity Financial, Inc. trades at the lower P/E: 5.6× against 33.9×. Velocity Financial, Inc. grew revenue faster over the last twelve months: 32.4% against 8.01%. Walker & Dunlop, Inc. has the higher net margin (2.84% vs 0.00%) and the higher return on invested capital (0.99% vs 0.00%). Across the 21 metrics below, Velocity Financial, Inc. leads on 13 and Walker & Dunlop, Inc. on 8.

Valuation

Metric VEL WD Mortgage Finance median
P/E 5.56 33.91 7.11
P/S 1.89 0.98 1.54
P/B 0.82 0.73 0.53
Price to free cash flow 6.59 n/m 6.59
EV/EBITDA 7.84 8.38 22.03
EV/Sales (0.71) 2.37 5.95
Earnings yield 17.98% 2.95% 2.09%
Free cash flow yield 15.17% (11.15%) (16.97%)

Profitability

Metric VEL WD Mortgage Finance median
Gross margin 0.00% 47.09% 84.40%
Operating margin 0.00% 9.18% 12.51%
Net margin 0.00% 2.84% (0.83%)
Free cash flow margin 0.00% (10.21%) (45.06%)
Return on equity 16.02% 2.10% (1.16%)
Return on assets 1.47% 0.76% 0.38%
Return on invested capital 0.00% 0.99% 0.36%

Growth

Metric VEL WD Mortgage Finance median
Revenue growth (TTM) 32.40% 8.01% 11.44%
EPS growth (last fiscal year) 43.98% (48.59%) —
Revenue growth, 5-year CAGR 20.68% 2.64% (11.16%)
Net income growth, 5-year CAGR 0.00% (25.48%) 0.00%

Health

Metric VEL WD Mortgage Finance median
Debt to equity 9.29 1.28 1.22
Current ratio 42.53 0.00 1.38
Net debt to EBITDA 28.41 4.45 9.85

Dividend

Metric VEL WD Mortgage Finance median
Dividend yield — 2.65% 5.81%
Payout ratio 0.00 0.58 0.00

Size

Metric VEL WD Mortgage Finance median
Market cap 608.01m 1.28b 214.95m

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