Head-To-Head Contrast: Walker & Dunlop (NYSE:WD) and 360 Finance (NYSE:QFIN)

Walker & Dunlop (NYSE:WD) and 360 Finance (NASDAQ:QFIN) are both small-cap finance companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Walker & Dunlop and 360 Finance, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walker & Dunlop 0 0 4 0 3.00
360 Finance 0 0 2 0 3.00



Walker & Dunlop presently has a consensus target price of $65.75, suggesting a potential upside of 18.40%. 360 Finance has a consensus target price of $29.00, suggesting a potential upside of 156.41%. Given 360 Finance’s higher possible upside, analysts clearly believe 360 Finance is more favorable than Walker & Dunlop.

Dividends

Walker & Dunlop pays an annual dividend of $1.20 per share and has a dividend yield of 2.2%. 360 Finance does not pay a dividend. Walker & Dunlop pays out 23.8% of its earnings in the form of a dividend.

Profitability

This table compares Walker & Dunlop and 360 Finance’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walker & Dunlop 22.05% 18.67% 5.68%
360 Finance N/A N/A N/A

Institutional and Insider Ownership

77.5% of Walker & Dunlop shares are owned by institutional investors. Comparatively, 0.8% of 360 Finance shares are owned by institutional investors. 10.4% of Walker & Dunlop shares 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.

Earnings & Valuation

This table compares Walker & Dunlop and 360 Finance’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walker & Dunlop $725.25 million 2.35 $161.44 million $5.04 11.02
360 Finance $646.79 million 2.52 $173.56 million N/A N/A

360 Finance has lower revenue, but higher earnings than Walker & Dunlop.

Summary

Walker & Dunlop beats 360 Finance on 8 of the 12 factors compared between the two stocks.

About Walker & Dunlop

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate loans for owners and developers of real estate in the United States. The company offers multifamily properties and commercial real estate finance products, such as first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It provides multifamily finance for multifamily, manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae DUS program; and FHA finance, such as construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. The company also acts as an intermediary in the placement of commercial real estate debt between institutional sources of capital, including life insurance companies, investment banks, commercial banks, pension funds, commercial mortgage backed securities (CMBS) issuers, and other institutional investors, as well as owners of various types of commercial real estate. In addition, it advises on capital structure; develops the financing package; facilitates negotiations between its client and institutional sources of capital; coordinates due diligence; and assists in closing the transaction, as well as offers interim loans and CMBS products, and investment sales brokerage services. Further, the company offers underwriting and risk management, servicing and asset management, and direct loan originators and correspondent network services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.

About 360 Finance

360 Finance, Inc. operates a digital consumer finance platform in China. Its platform provides online consumer finance products to prime and underserved borrowers. The company was founded in 2016 and is headquartered in Shanghai, China.

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