Head to Head Contrast: Fannie Mae (FNMA) & Its Competitors

Fannie Mae (OTCMKTS:FNMA) is one of 919 publicly-traded companies in the “Banks” industry, but how does it compare to its rivals? We will compare Fannie Mae to related businesses based on the strength of its institutional ownership, valuation, dividends, profitability, earnings, risk and analyst recommendations.

Risk and Volatility

Fannie Mae has a beta of 1.72, suggesting that its share price is 72% more volatile than the S&P 500. Comparatively, Fannie Mae’s rivals have a beta of 0.61, suggesting that their average share price is 39% less volatile than the S&P 500.

Valuation and Earnings

This table compares Fannie Mae and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	20.14
Fannie Mae Competitors	$54.81 billion	$2.42 billion	21.36

Fannie Mae has higher revenue and earnings than its rivals. Fannie Mae 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.

Insider and Institutional Ownership

0.0% of Fannie Mae shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Banks” companies are owned by institutional investors. 1.0% of Fannie Mae shares are owned by insiders. Comparatively, 9.7% of shares of all “Banks” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Fannie Mae and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	5	0	0	1.83
Fannie Mae Competitors	7494	30253	27858	1490	2.35

Fannie Mae currently has a consensus target price of $7.30, suggesting a potential upside of 64.79%. As a group, “Banks” companies have a potential upside of 14.10%. Given Fannie Mae’s higher probable upside, research analysts clearly believe Fannie Mae is more favorable than its rivals.

Profitability

This table compares Fannie Mae and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	5.16%	-88.54%	0.52%
Fannie Mae Competitors	15.63%	9.41%	0.93%

Summary

Fannie Mae rivals beat Fannie Mae on 9 of the 13 factors compared.

Fannie Mae Company Profile

Fannie Mae, formally the Federal National Mortgage Association, is a U.S. government-sponsored enterprise that supports the secondary mortgage market. Founded in 1938, the company generally does not make mortgage loans directly to borrowers. Instead, it purchases eligible mortgages from lenders, helping those lenders replenish funds for additional home loans. Fannie Mae also packages many of the mortgages it acquires into mortgage-backed securities and guarantees investors timely payment of principal and interest, subject to the terms of those securities.