PFSI vs. UBSI, SLM, KRG, RDN, EPRT, ESGR, FFIN, WTM, AEL, and VNO
Should you be buying PennyMac Financial Services stock or one of its competitors? The main competitors of PennyMac Financial Services include United Bankshares (UBSI), SLM (SLM), Kite Realty Group Trust (KRG), Radian Group (RDN), Essential Properties Realty Trust (EPRT), Enstar Group (ESGR), First Financial Bankshares (FFIN), White Mountains Insurance Group (WTM), American Equity Investment Life (AEL), and Vornado Realty Trust (VNO). These companies are all part of the "finance" sector.
United Bankshares (NASDAQ:UBSI) and PennyMac Financial Services (NYSE:PFSI) are both mid-cap finance companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, community ranking, institutional ownership, profitability, media sentiment, valuation, risk, dividends and analyst recommendations.
United Bankshares has a net margin of 22.51% compared to United Bankshares' net margin of 10.94%. United Bankshares' return on equity of 10.48% beat PennyMac Financial Services' return on equity.
70.8% of United Bankshares shares are owned by institutional investors. Comparatively, 57.9% of PennyMac Financial Services shares are owned by institutional investors. 3.7% of United Bankshares shares are owned by insiders. Comparatively, 16.6% of PennyMac Financial Services shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
United Bankshares has higher earnings, but lower revenue than PennyMac Financial Services. United Bankshares is trading at a lower price-to-earnings ratio than PennyMac Financial Services, indicating that it is currently the more affordable of the two stocks.
In the previous week, PennyMac Financial Services had 1 more articles in the media than United Bankshares. MarketBeat recorded 9 mentions for PennyMac Financial Services and 8 mentions for United Bankshares. PennyMac Financial Services' average media sentiment score of 1.08 beat United Bankshares' score of 0.75 indicating that United Bankshares is being referred to more favorably in the media.
PennyMac Financial Services received 120 more outperform votes than United Bankshares when rated by MarketBeat users. Likewise, 64.09% of users gave PennyMac Financial Services an outperform vote while only 47.70% of users gave United Bankshares an outperform vote.
United Bankshares currently has a consensus target price of $37.00, indicating a potential upside of 5.65%. PennyMac Financial Services has a consensus target price of $97.75, indicating a potential upside of 4.69%. Given PennyMac Financial Services' higher probable upside, equities research analysts clearly believe United Bankshares is more favorable than PennyMac Financial Services.
United Bankshares pays an annual dividend of $1.48 per share and has a dividend yield of 4.2%. PennyMac Financial Services pays an annual dividend of $0.80 per share and has a dividend yield of 0.9%. United Bankshares pays out 56.5% of its earnings in the form of a dividend. PennyMac Financial Services pays out 27.8% 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. United Bankshares has raised its dividend for 1 consecutive years. United Bankshares is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
United Bankshares has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500. Comparatively, PennyMac Financial Services has a beta of 1.68, meaning that its stock price is 68% more volatile than the S&P 500.
Summary
PennyMac Financial Services beats United Bankshares on 13 of the 21 factors compared between the two stocks.
Get PennyMac Financial Services News Delivered to You Automatically
Sign up to receive the latest news and ratings for PFSI and its competitors with MarketBeat's FREE daily newsletter.
This chart shows the number of new MarketBeat users adding PFSI and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
PennyMac Financial Services Competitors List
Related Companies and Tools
