Critical Comparison: Finance of America Companies (FOA) versus Its Peers

Finance of America Companies (NYSE:FOA) is one of 336 public companies in the “Financial Services” industry, but how does it compare to its rivals? We will compare Finance of America Companies to similar companies based on the strength of its analyst recommendations, dividends, institutional ownership, profitability, valuation, earnings and risk.

Valuation and Earnings

This table compares Finance of America Companies and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Finance of America Companies	$112.62 million	$45.24 million	-1.46
Finance of America Companies Competitors	$8.83 billion	$1.11 billion	10.29

Finance of America Companies’ rivals have higher revenue and earnings than Finance of America Companies. Finance of America Companies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Finance of America Companies and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finance of America Companies	1	2	2	0	2.20
Finance of America Companies Competitors	1953	6937	11711	447	2.51

Finance of America Companies presently has a consensus price target of $30.50, indicating a potential upside of 167.38%. As a group, “Financial Services” companies have a potential downside of 4.62%. Given Finance of America Companies’ higher probable upside, equities analysts plainly believe Finance of America Companies is more favorable than its rivals.

Risk & Volatility

Finance of America Companies has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Finance of America Companies’ rivals have a beta of 2.52, meaning that their average stock price is 152% more volatile than the S&P 500.

Institutional & Insider Ownership

97.2% of Finance of America Companies shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 35.4% of Finance of America Companies shares are owned by insiders. Comparatively, 21.7% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Finance of America Companies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finance of America Companies	-0.10%	21.24%	0.24%
Finance of America Companies Competitors	-315.15%	-42.19%	-6.56%

Summary

Finance of America Companies rivals beat Finance of America Companies on 7 of the 13 factors compared.

Finance of America Companies Company Profile

Finance of America Companies, Inc., which operates as Finance of America, is a specialty finance company focused on home-equity solutions. Its core business is reverse mortgage lending, which enables eligible homeowners to access a portion of their home equity while continuing to live in their homes, subject to loan terms and borrower obligations. The company offers government-insured Home Equity Conversion Mortgages (HECMs) and proprietary reverse mortgage products, including jumbo loans. Its offerings also include reverse mortgages used to purchase a home.