PennyMac Financial Services (NYSE:PFSI) and PSM HOLDINGS In/SH (OTCMKTS:PSMH) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.
Institutional and Insider Ownership
90.4% of PennyMac Financial Services shares are held by institutional investors. 42.1% of PennyMac Financial Services shares are held by company insiders. Comparatively, 71.1% of PSM HOLDINGS In/SH shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
PennyMac Financial Services has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, PSM HOLDINGS In/SH has a beta of 5.9, indicating that its share price is 490% more volatile than the S&P 500.
Earnings & Valuation
This table compares PennyMac Financial Services and PSM HOLDINGS In/SH’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PennyMac Financial Services||$955.46 million||0.53||$100.75 million||$2.20||9.21|
|PSM HOLDINGS In/SH||N/A||N/A||N/A||N/A||N/A|
PennyMac Financial Services has higher revenue and earnings than PSM HOLDINGS In/SH.
This table compares PennyMac Financial Services and PSM HOLDINGS In/SH’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PennyMac Financial Services||11.03%||3.91%||0.99%|
|PSM HOLDINGS In/SH||N/A||N/A||N/A|
This is a breakdown of current recommendations for PennyMac Financial Services and PSM HOLDINGS In/SH, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PennyMac Financial Services||0||2||3||0||2.60|
|PSM HOLDINGS In/SH||0||0||0||0||N/A|
PennyMac Financial Services presently has a consensus target price of $24.25, indicating a potential upside of 19.63%. Given PennyMac Financial Services’ higher probable upside, analysts plainly believe PennyMac Financial Services is more favorable than PSM HOLDINGS In/SH.
PennyMac Financial Services beats PSM HOLDINGS In/SH on 7 of the 9 factors compared between the two stocks.
About PennyMac Financial Services
PennyMac Financial Services, Inc., through its subsidiaries, engages in the mortgage banking and investment management activities in the United States. It operates through three segments: Loan Production, Loan Servicing, and Investment Management. The Loan Production segment is involved in the origination, acquisition, and sale of mortgage loans. This segment originates first-lien residential conventional and government-insured or guaranteed mortgage loans to allow customers to purchase or refinance their homes. The Loan Servicing segment engages in the servicing of newly originated mortgage loans, and execution and management of early buyout loans. It performs loan administration, collection, and default management activities, including the collection and remittance of loan payments; response to customer inquiries; accounting for principal and interest; holding custodial funds for the payment of property taxes and insurance premiums; counseling delinquent mortgagors; and supervising foreclosures and property dispositions. This segment also services conventional and government-insured or guaranteed loans; and distressed mortgage loans that have been acquired as investments by its advised entities. The Investment Management segment is involved in sourcing, performing diligence, bidding, and closing investment asset acquisitions; managing correspondent production activities for PennyMac Mortgage Investment Trust; and managing the acquired assets for the advised entities. PennyMac Financial Services, Inc. was founded in 2008 and is based in Westlake Village, California.
About PSM HOLDINGS In/SH
PSM Holdings, Inc. originates mortgage loans in the United States. It funds its mortgage loans either directly off its warehouse lines of credit or through brokering transactions to other third parties. The company solicits and receives applications for secured residential mortgage loans; and provides mortgage banking services. It operates through a network of approximately 26 offices located in Arizona, Arkansas, California, Colorado, Florida, Kansas, Missouri, Montana, New Jersey, New Mexico, North Dakota, Oklahoma, Oregon, Texas, Utah, Washington, and Virginia. The company is based in Murrieta, California.
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