Walker & Dunlop (NYSE:WD) versus The9 (NASDAQ:NCTY) Critical Survey

Walker & Dunlop (NYSE:WD) and The9 (NASDAQ:NCTY) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Profitability

This table compares Walker & Dunlop and The9’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Walker & Dunlop	8.91%	9.81%	4.11%
The9	N/A	N/A	N/A

Valuation and Earnings

This table compares Walker & Dunlop and The9″s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Walker & Dunlop	$1.05 billion	3.50	$107.36 million	$2.80	38.99
The9	$25.22 million	5.19	$2.82 million	N/A	N/A

Walker & Dunlop has higher revenue and earnings than The9.

Analyst Ratings

This is a breakdown of recent ratings for Walker & Dunlop and The9, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Walker & Dunlop	0	2	0	1	2.67
The9	0	0	0	0	0.00

Walker & Dunlop presently has a consensus price target of $111.00, suggesting a potential upside of 1.69%. Given Walker & Dunlop’s stronger consensus rating and higher probable upside, equities analysts clearly believe Walker & Dunlop is more favorable than The9.

Risk and Volatility

Walker & Dunlop has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, The9 has a beta of 2.07, meaning that its share price is 107% more volatile than the S&P 500.

Institutional & Insider Ownership

81.0% of Walker & Dunlop shares are owned by institutional investors. Comparatively, 0.5% of The9 shares are owned by institutional investors. 5.3% of Walker & Dunlop shares are owned by company insiders. Comparatively, 30.8% of The9 shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Walker & Dunlop beats The9 on 9 of the 12 factors compared between the two stocks.

About Walker & Dunlop

Walker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate financing products and services for owners and developers of real estate in the United States. It operates through three segments: Capital Markets, Servicing & Asset Management, and Corporate. The company offers first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, and small-balance loans. It also provides finance for multifamily, manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae's DUS program; and construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. In addition, the company acts as a debt broker to work with life insurance companies, banks, and other institutional lenders to find debt and/or equity solution for the borrowers' needs; and offers property sales brokerage services to owners and developers of multifamily properties, and commercial real estate and multifamily property appraisals for various investors. Further, it provides multifamily appraisal and valuation services; and real estate-related investment banking and advisory services, including housing market research. Additionally, the company offers servicing and asset-managing the portfolio of loans; originates loans through its principal lending and investing activities; and manages third-party capital invested in tax credit equity funds focused on the LIHTC sector and other commercial real estate sectors. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.

About The9

The9 Limited operates as a cryptocurrency mining business in China, Eastern Europe, Asia, and North America. The company was formerly known as GameNow.net Limited and changed its name to The9 Limited in February 2004. The9 Limited was incorporated in 1999 and is headquartered in Shanghai, the People’s Republic of China.