Head-To-Head Analysis: Fannie Mae (FNMA) vs. Its Rivals

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

Volatility & Risk

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

Insider & Institutional Ownership

0.0% of Fannie Mae shares are held by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are held by institutional investors. 1.0% of Fannie Mae shares are held by company insiders. Comparatively, 28.4% of shares of all “FIN – MTG&REL SVS” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fannie Mae	1	3	1	2	2.57
Fannie Mae Competitors	252	869	1136	35	2.42

Fannie Mae currently has a consensus price target of $12.75, suggesting a potential upside of 63.88%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 42.63%. Given Fannie Mae’s stronger consensus rating and higher possible upside, equities analysts plainly 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	4.53%	-65.94%	0.50%
Fannie Mae Competitors	3.88%	-21.98%	0.34%

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Fannie Mae	$159.17 billion	$14.36 billion	778.00
Fannie Mae Competitors	$19.26 billion	$1.63 billion	90.08

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

Summary

Fannie Mae beats its rivals 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.