Stonegate Mortgage (NYSE: SGM) is one of 28 public companies in the “Consumer Lending” industry, but how does it compare to its peers? We will compare Stonegate Mortgage to similar companies based on the strength of its risk, profitability, valuation, earnings, analyst recommendations, dividends and institutional ownership.

Institutional & Insider Ownership

44.3% of Stonegate Mortgage shares are owned by institutional investors. Comparatively, 78.7% of shares of all “Consumer Lending” companies are owned by institutional investors. 44.5% of Stonegate Mortgage shares are owned by insiders. Comparatively, 14.1% of shares of all “Consumer Lending” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Stonegate Mortgage and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stonegate Mortgage -13.22% -6.70% -1.57%
Stonegate Mortgage Competitors -123.09% -80.64% -0.72%

Volatility & Risk

Stonegate Mortgage has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Stonegate Mortgage’s peers have a beta of 1.48, suggesting that their average stock price is 48% more volatile than the S&P 500.

Valuation & Earnings

This table compares Stonegate Mortgage and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Stonegate Mortgage N/A N/A 6.89
Stonegate Mortgage Competitors $2.77 billion $388.84 million 65.25

Stonegate Mortgage’s peers have higher revenue and earnings than Stonegate Mortgage. Stonegate Mortgage is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Stonegate Mortgage and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stonegate Mortgage 0 0 0 0 N/A
Stonegate Mortgage Competitors 170 690 1079 54 2.51

As a group, “Consumer Lending” companies have a potential upside of 23.35%. Given Stonegate Mortgage’s peers higher probable upside, analysts plainly believe Stonegate Mortgage has less favorable growth aspects than its peers.

Summary

Stonegate Mortgage peers beat Stonegate Mortgage on 5 of the 8 factors compared.

Stonegate Mortgage Company Profile

Stonegate Mortgage Corporation is a non-bank mortgage company. The Company is focused on originating, financing and servicing the United States residential mortgage loans. The Company’s segments include Originations, Servicing, Financing and Other. The Originations segment primarily originates and sells residential mortgage loans, which conform to the underwriting guidelines of the government sponsored enterprises and government agencies, and non-agency whole loan investors. The Servicing segment includes loan administration, collection and default activities, including the collection and remittance of loan payments, responding to customer inquiries, collection of principal and interest payments, holding custodial funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors and modifying loans. The Financing segment includes warehouse-lending activities to correspondent customers by the Company’s subsidiary, NattyMac, LLC.

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