LM Funding America (LMFA) and Mr. Cooper Group (COOP) Head-To-Head Comparison

LM Funding America (NASDAQ:LMFA) and Mr. Cooper Group (NASDAQ:COOP) are both small-cap finance companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

This table compares LM Funding America and Mr. Cooper Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LM Funding America -13.95% -20.77% -15.28%
Mr. Cooper Group 47.66% 62.93% 6.98%

Insider and Institutional Ownership

5.1% of LM Funding America shares are owned by institutional investors. Comparatively, 90.0% of Mr. Cooper Group shares are owned by institutional investors. 28.0% of LM Funding America shares are owned by company insiders. Comparatively, 0.9% of Mr. Cooper Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

LM Funding America has a beta of 2.8, indicating that its share price is 180% more volatile than the S&P 500. Comparatively, Mr. Cooper Group has a beta of 0.4, indicating that its share price is 60% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for LM Funding America and Mr. Cooper Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LM Funding America 0 0 0 0 N/A
Mr. Cooper Group 1 1 2 0 2.25

Mr. Cooper Group has a consensus target price of $17.50, suggesting a potential upside of 82.67%. Given Mr. Cooper Group’s higher probable upside, analysts clearly believe Mr. Cooper Group is more favorable than LM Funding America.

Valuation & Earnings

This table compares LM Funding America and Mr. Cooper Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LM Funding America $3.39 million 1.22 -$470,000.00 N/A N/A
Mr. Cooper Group $1.79 billion 0.49 $1.04 billion N/A N/A

Mr. Cooper Group has higher revenue and earnings than LM Funding America.

Summary

Mr. Cooper Group beats LM Funding America on 8 of the 11 factors compared between the two stocks.

LM Funding America Company Profile

LM Funding America, Inc., through its subsidiary, LM Funding, LLC, operates as a specialty finance company. It provides funding to nonprofit community associations (Associations) primarily located in the state of Florida, as well as in the states of Washington, Colorado, and Illinois. The company offers funding to Associations by purchasing their rights under delinquent accounts that are selected by the Associations arising from unpaid Association assessments. It is also involved in the business of purchasing delinquent accounts on various terms tailored to suit each Association's financial needs, including under its New Neighbor Guaranty program. The company was founded in 2008 and is based in Tampa, Florida.

Mr. Cooper Group Company Profile

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related principally to single-family residences in the United States. The company operates through three segments: Servicing, Originations, and Xome. The Servicing segment performs activities for originated and purchased loans, as well as operates as a subservicer for various clients that own the underlying servicing rights. The Originations segment originates, purchases, and sells mortgage loans. The Xome segment offers technology and data enhanced solutions to home buyers, home sellers, real estate professionals, and companies engaged in the servicing and origination of mortgage loans. The company operates primarily under the Mr. Cooper and Xome brands. The company was formerly known as WMIH Corp. and changed its name to Mr. Cooper Group Inc. in October 2018. Mr. Cooper Group Inc. is headquartered in Coppell, Texas.

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