Comparing Fannie Mae (FNMA) and Its Rivals

Fannie Mae (OTCMKTS:FNMA) is one of 19 public companies in the “FIN – MTG&REL SVS” industry, but how does it weigh in compared to its peers? We will compare Fannie Mae to similar companies based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

0.0% of Fannie Mae shares are owned by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are owned by institutional investors. 1.0% of Fannie Mae shares are owned by company insiders. Comparatively, 30.1% of shares of all “FIN – MTG&REL SVS” companies are owned by company 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.

Earnings and Valuation

This table compares Fannie Mae and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	815.00
Fannie Mae Competitors	$19.36 billion	$1.63 billion	61.18

Fannie Mae has higher revenue and earnings than its peers. Fannie Mae is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and price targets for Fannie Mae and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	3	1	1	2.33
Fannie Mae Competitors	246	858	1122	32	2.42

Fannie Mae presently has a consensus target price of $13.30, suggesting a potential upside of 63.19%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 35.15%. Given Fannie Mae’s higher possible upside, analysts clearly believe Fannie Mae is more favorable than its peers.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fannie Mae	4.53%	-65.94%	0.50%
Fannie Mae Competitors	3.66%	-79.86%	0.07%

Risk and Volatility

Fannie Mae has a beta of 1.73, meaning that its stock price is 73% more volatile than the S&P 500. Comparatively, Fannie Mae’s peers have a beta of 1.33, meaning that their average stock price is 33% more volatile than the S&P 500.

Summary

Fannie Mae beats its peers on 9 of the 13 factors compared.

About Fannie Mae

Federal National Mortgage Association provides financing solutions for mortgages in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment securitizes and purchases single-family fixed-rate or adjustable-rate, first-lien mortgage loans, or mortgage-related securities backed by these loans; and loans that are insured by Federal Housing Administration, loans guaranteed by the Department of Veterans Affairs and Rural Development Housing and Community Facilities Program of the U.S. Department of Agriculture, manufactured housing mortgage loans, and other mortgage-related securities. The Multifamily segment securitizes multifamily mortgage loans into Fannie Mae mortgage backed securities (MBS); purchases multifamily mortgage loans; and provides credit enhancement for bonds issued by state and local housing finance authorities to finance multifamily housing. This segment also issues structured MBS backed by Fannie Mae multifamily MBS; buys and sells multifamily agency mortgage-backed securities; and invests in low-income housing tax credit multifamily projects. Federal National Mortgage Association was founded in 1938 and is based in Washington, the District of Columbia.