Contrasting UWM (NYSE:UWMC) & Winland Electronics (OTCMKTS:WELX)

Winland Electronics (OTCMKTS:WELX) and UWM (NYSE:UWMC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Valuation & Earnings

This table compares Winland Electronics and UWM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Winland Electronics	$5.81 million	2.05	-$520,000.00	($0.50)	-4.70
UWM	$3.16 billion	0.75	$27.38 million	($0.08)	-18.56

UWM has higher revenue and earnings than Winland Electronics. UWM is trading at a lower price-to-earnings ratio than Winland Electronics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Winland Electronics and UWM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Winland Electronics	N/A	N/A	N/A
UWM	-1.04%	-6.20%	-0.50%

Volatility & Risk

Winland Electronics has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500.

Insider & Institutional Ownership

53.6% of UWM shares are owned by institutional investors. 8.1% of Winland Electronics shares are owned by company insiders. Comparatively, 80.3% of UWM shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Winland Electronics and UWM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Winland Electronics	0	0	0	0	0.00
UWM	2	6	6	0	2.29

UWM has a consensus target price of $4.01, suggesting a potential upside of 170.28%. Given UWM’s stronger consensus rating and higher probable upside, analysts clearly believe UWM is more favorable than Winland Electronics.

Summary

UWM beats Winland Electronics on 9 of the 14 factors compared between the two stocks.

About Winland Electronics

Winland Holdings Corporation, through its subsidiaries, provides critical condition monitoring devices to the security industry. Its products are used to protect against loss of assets due to damage from water, excess humidity, extremes of temperature, and loss of power. The company offers EnviroAlert, which monitors temperature, humidity, and/or water presence in critical environments; TempAlert, a temperature monitoring device for residential and commercial environments through security systems; WaterBug, a water presence and leak detection system; and Power-Out Alert, a power outage detector. It also provides INSIGHT, an automated cloud-based platform that offers early alerting, reporting, and logging services designed to ensure regulatory compliance. The company offers its products through a network of distributors, dealers, security installers, and integrators for industries including health and medical, grocery and food services, and commercial and industrial, as well as agriculture and residential. Winland Holdings Corporation was incorporated in 1972 and is headquartered in Mankato, Minnesota.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.