Comparing Fannie Mae (FNMA) & Its Rivals

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

Valuation & Earnings

This table compares Fannie Mae and its competitors gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	806.00
Fannie Mae Competitors	$19.33 billion	$1.63 billion	87.16

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

Analyst Recommendations

This is a summary of current recommendations for Fannie Mae and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	3	2	1	2.43
Fannie Mae Competitors	246	858	1125	34	2.42

Fannie Mae presently has a consensus target price of $12.75, indicating a potential upside of 58.19%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 40.96%. Given Fannie Mae’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Fannie Mae is more favorable than its competitors.

Insider & Institutional 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 insiders. Comparatively, 31.1% of shares of all “FIN – MTG&REL SVS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Fannie Mae and its competitors’ 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%	-80.46%	0.07%

Risk and Volatility

Fannie Mae has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Fannie Mae’s competitors have a beta of 1.25, indicating that their average stock price is 25% more volatile than the S&P 500.

Summary

Fannie Mae beats its competitors on 10 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.