Comparing Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) & UWM (NYSE:UWMC)

Grupo Financiero Banorte SAB de CV (OTCMKTS:GBOOY) and UWM (NYSE:UWMC) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Dividends

Grupo Financiero Banorte SAB de CV pays an annual dividend of $4.38 per share and has a dividend yield of 7.6%. UWM pays an annual dividend of $0.40 per share and has a dividend yield of 28.3%. Grupo Financiero Banorte SAB de CV pays out 73.9% of its earnings in the form of a dividend. UWM pays out -500.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. UWM is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

0.0% of Grupo Financiero Banorte SAB de CV shares are held by institutional investors. Comparatively, 53.6% of UWM shares are held by institutional investors. 80.9% of UWM shares are held by company 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.

Profitability

This table compares Grupo Financiero Banorte SAB de CV and UWM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Grupo Financiero Banorte SAB de CV	14.97%	22.30%	2.20%
UWM	-1.04%	-6.20%	-0.50%

Risk & Volatility

Grupo Financiero Banorte SAB de CV has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, UWM has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Grupo Financiero Banorte SAB de CV and UWM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Grupo Financiero Banorte SAB de CV	1	0	0	0	1.00
UWM	1	8	5	0	2.29

UWM has a consensus price target of $3.40, suggesting a potential upside of 140.28%. Given UWM’s stronger consensus rating and higher probable upside, analysts plainly believe UWM is more favorable than Grupo Financiero Banorte SAB de CV.

Valuation & Earnings

This table compares Grupo Financiero Banorte SAB de CV and UWM”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Grupo Financiero Banorte SAB de CV	$21.89 billion	1.48	$3.38 billion	$5.93	9.72
UWM	$3.16 billion	0.72	$27.38 million	($0.08)	-17.69

Grupo Financiero Banorte SAB de CV has higher revenue and earnings than UWM. UWM is trading at a lower price-to-earnings ratio than Grupo Financiero Banorte SAB de CV, indicating that it is currently the more affordable of the two stocks.

About Grupo Financiero Banorte SAB de CV

Grupo Financiero Banorte, S.A.B. de C.V., through its subsidiaries, engages in the provision of banking and financial products and services in Mexico and internationally. The company accepts checking, current, retirement, and payroll accounts; and provides loans, including mortgage, car, payroll, personal, structured, syndicated, SME loans, and credit cards, as well as letter of credit financing, acquisition funding, and import and export foreign trade financing. It is also involved in investment planning, foreign currency purchase/sale, financial advice, brokerage, asset management, investment banking, letters of credit, bank guarantees, and leasing and factoring activities. In addition, the company sells mutual funds and debt and capital instruments; issues debit cards; and provides insurance services for car, home, life, medical, employee, and SMEs, as well as cash management services for collection, trustees, payroll, and lines of credit. Further, it provides online banking, POS, payment, reconciliation, documentary collection, import bills of exchange discount, International wire transfer, remittances, storage, inventory management, logistics, marketing, and payroll services. The company was founded in 1899 and is based in Mexico City, Mexico.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.