Reviewing Walker & Dunlop (NYSE:WD) and Chime Financial (NASDAQ:CHYM)

Chime Financial (NASDAQ:CHYM) and Walker & Dunlop (NYSE:WD) are both finance companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, profitability, risk, institutional ownership, analyst recommendations, earnings and dividends.

Valuation & Earnings

This table compares Chime Financial and Walker & Dunlop”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chime Financial	$2.19 billion	5.12	-$1.01 billion	($0.07)	-422.43
Walker & Dunlop	$1.23 billion	0.95	$57.08 million	$1.12	30.48

Walker & Dunlop has lower revenue, but higher earnings than Chime Financial. Chime Financial is trading at a lower price-to-earnings ratio than Walker & Dunlop, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Chime Financial and Walker & Dunlop, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chime Financial	1	2	17	3	2.96
Walker & Dunlop	1	0	5	0	2.67

Chime Financial presently has a consensus price target of $36.38, indicating a potential upside of 23.03%. Walker & Dunlop has a consensus price target of $59.75, indicating a potential upside of 75.00%. Given Walker & Dunlop’s higher probable upside, analysts plainly believe Walker & Dunlop is more favorable than Chime Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Chime Financial	-0.74%	-1.28%	-0.92%
Walker & Dunlop	2.94%	7.25%	2.31%

Risk and Volatility

Chime Financial has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Walker & Dunlop has a beta of 1.52, suggesting that its share price is 52% more volatile than the S&P 500.

Institutional & Insider Ownership

81.0% of Walker & Dunlop shares are held by institutional investors. 12.3% of Chime Financial shares are held by company insiders. Comparatively, 4.0% of Walker & Dunlop shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Walker & Dunlop beats Chime Financial on 9 of the 15 factors compared between the two stocks.

About Chime Financial

Chime is a financial technology company that partners with federally regulated, FDIC-insured banks—The Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC—to provide consumer banking products and services. The company’s model is designed to eliminate common fees and simplify access to basic financial services.

Chime does not charge overdraft fees, monthly service fees, or require minimum balances. All account balances are held at partner banks and protected by applicable regulatory safeguards to ensure funds remain secure and accessible.

About Walker & Dunlop

Walker & Dunlop, Inc. is a holding company, which engages in the provision of commercial real estate and finance services. It operates through the following segments: Capital Markets, Servicing and Asset Management, and Corporate. The Capital Markets segment offers a comprehensive range of commercial real estate finance products to customers. The Servicing and Asset Management segment includes servicing and asset-managing and managing third-party capital investments. The Corporate segment consists primarily of the company’s treasury operations and other corporate-level activities. The company was founded by Oliver Walker and Laird Dunlop in 1937 and is headquartered in Bethesda, MD.