Mr. Cooper Group (NASDAQ:COOP) and LM Funding America (NASDAQ:LMFA) are both small-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, analyst recommendations, valuation, institutional ownership and profitability.
This is a breakdown of recent recommendations and price targets for Mr. Cooper Group and LM Funding America, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Mr. Cooper Group||1||1||2||0||2.25|
|LM Funding America||0||0||0||0||N/A|
Earnings and Valuation
This table compares Mr. Cooper Group and LM Funding America’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Mr. Cooper Group||$1.79 billion||0.46||$1.04 billion||$0.12||75.08|
|LM Funding America||$4.39 million||0.72||-$8.62 million||N/A||N/A|
Mr. Cooper Group has higher revenue and earnings than LM Funding America.
Volatility & Risk
Mr. Cooper Group has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, LM Funding America has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500.
Institutional and Insider Ownership
89.3% of Mr. Cooper Group shares are held by institutional investors. Comparatively, 7.5% of LM Funding America shares are held by institutional investors. 1.7% of Mr. Cooper Group shares are held by insiders. Comparatively, 28.0% of LM Funding America shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This table compares Mr. Cooper Group and LM Funding America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Mr. Cooper Group||57.99%||98.93%||11.56%|
|LM Funding America||-72.06%||-274.08%||-138.70%|
Mr. Cooper Group beats LM Funding America on 8 of the 11 factors compared between the two stocks.
About Mr. Cooper Group
Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is based in Coppell, Texas.
About LM Funding America
LM Funding America, Inc., through its subsidiary, LM Funding, LLC, operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. The company was founded in 2008 and is based in Tampa, Florida.
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