Analyzing WMIH (WMIH) and Its Rivals

WMIH (NASDAQ: WMIH) is one of 30 publicly-traded companies in the “Nondepository credit institutions” industry, but how does it contrast to its competitors? We will compare WMIH to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Profitability

This table compares WMIH and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WMIH 229.44% 18.07% 3.40%
WMIH Competitors 12.04% -58.79% -6.91%

Valuation & Earnings

This table compares WMIH and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
WMIH $7.89 million $25.88 million 137.00
WMIH Competitors $4.31 billion $615.35 million 18.17

WMIH’s competitors have higher revenue and earnings than WMIH. WMIH is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

WMIH has a beta of -1.23, meaning that its stock price is 223% less volatile than the S&P 500. Comparatively, WMIH’s competitors have a beta of 1.43, meaning that their average stock price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

36.6% of WMIH shares are owned by institutional investors. Comparatively, 56.9% of shares of all “Nondepository credit institutions” companies are owned by institutional investors. 1.7% of WMIH shares are owned by company insiders. Comparatively, 15.4% of shares of all “Nondepository credit institutions” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for WMIH and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WMIH 2 0 3 0 2.20
WMIH Competitors 189 776 1012 48 2.45

WMIH presently has a consensus price target of $1.66, suggesting a potential upside of 21.17%. As a group, “Nondepository credit institutions” companies have a potential upside of 14.72%. Given WMIH’s higher probable upside, research analysts clearly believe WMIH is more favorable than its competitors.

Summary

WMIH competitors beat WMIH on 7 of the 13 factors compared.

WMIH Company Profile

WMIH Corp., through its subsidiary, WM Mortgage Reinsurance Company, Inc., engages in legacy reinsurance business with respect to mortgage insurance operated in runoff mode. The company was formerly known as WMI Holdings Corp. and changed its name to WMIH Corp. in May 2015. WMIH Corp. was founded in 1889 and is headquartered in Seattle, Washington.

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