PennyMac Financial Services (NYSE: PFSI) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its rivals? We will compare PennyMac Financial Services to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, valuation, profitability and earnings.

Valuation & Earnings

This table compares PennyMac Financial Services and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
PennyMac Financial Services $1.24 billion N/A 5.67
PennyMac Financial Services Competitors $678.45 million $169.32 million 11.78

PennyMac Financial Services has higher revenue, but lower earnings than its rivals. PennyMac Financial Services is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for PennyMac Financial Services and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PennyMac Financial Services 1 1 4 0 2.50
PennyMac Financial Services Competitors 158 555 513 23 2.32

PennyMac Financial Services currently has a consensus price target of $20.25, indicating a potential upside of 20.18%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 27.28%. Given PennyMac Financial Services’ rivals higher possible upside, analysts plainly believe PennyMac Financial Services has less favorable growth aspects than its rivals.

Volatility & Risk

PennyMac Financial Services has a beta of 0.61, suggesting that its stock price is 39% less volatile than the S&P 500. Comparatively, PennyMac Financial Services’ rivals have a beta of 0.82, suggesting that their average stock price is 18% less volatile than the S&P 500.

Profitability

This table compares PennyMac Financial Services and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PennyMac Financial Services 6.87% 4.79% 1.21%
PennyMac Financial Services Competitors 14.79% -27.41% 0.87%

Institutional & Insider Ownership

86.6% of PennyMac Financial Services shares are held by institutional investors. Comparatively, 54.9% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 45.6% of PennyMac Financial Services shares are held by insiders. Comparatively, 12.8% of shares of all “Retail & Mortgage Banks” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

PennyMac Financial Services beats its rivals on 7 of the 12 factors compared.

About PennyMac Financial Services

PennyMac Financial Services, Inc. (PFSI) is a financial services company. The Company is focused on the production and servicing of the United States residential mortgage loans and the management of investments related to the United States mortgage market. The Company operates through three segments: loan production, loan servicing and investment management. PFSI’s mortgage banking subsidiary, PennyMac Loan Services, LLC (PLS), is a non-bank producer and servicer of mortgage loans in the United States. As of December 31, 2016, PLS serviced loans in all 50 states, the District of Columbia, Guam and the United States Virgin Islands, and originated loans in 49 states and the District of Columbia. PFSI’s investment management subsidiary, PNMAC Capital Management, LLC (PCM), is an investment advisor. PLS is a seller and servicer for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Receive News & Stock Ratings for PennyMac Financial Services Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PennyMac Financial Services Inc. and related stocks with our FREE daily email newsletter.