Head-To-Head Contrast: UWM (NYSE:UWMC) versus Forge Global (NYSE:FRGE)

Forge Global (NYSE:FRGE) and UWM (NYSE:UWMC) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, risk, analyst recommendations, earnings and institutional ownership.

Volatility & Risk

Forge Global has a beta of 2.18, meaning that its share price is 118% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.

Earnings and Valuation

This table compares Forge Global and UWM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Forge Global	$92.88 million	6.71	-$66.33 million	($5.20)	-8.65
UWM	$3.16 billion	0.69	$27.38 million	($0.08)	-16.94

UWM has higher revenue and earnings than Forge Global. UWM is trading at a lower price-to-earnings ratio than Forge Global, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Forge Global and UWM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Forge Global	-71.87%	-29.06%	-24.63%
UWM	-1.04%	-5.61%	-0.50%

Institutional & Insider Ownership

40.7% of Forge Global shares are owned by institutional investors. Comparatively, 53.6% of UWM shares are owned by institutional investors. 4.5% of Forge Global shares are owned by insiders. Comparatively, 80.3% of UWM shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Forge Global and UWM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Forge Global	1	4	0	0	1.80
UWM	2	6	6	0	2.29

Forge Global currently has a consensus target price of $45.00, indicating a potential upside of 0.00%. UWM has a consensus target price of $4.10, indicating a potential upside of 202.92%. Given UWM’s stronger consensus rating and higher probable upside, analysts plainly believe UWM is more favorable than Forge Global.

Summary

UWM beats Forge Global on 11 of the 14 factors compared between the two stocks.

About Forge Global

Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.