PennyMac Finl Svcs Inc (PFSI)vsVelocity Financial Llc (VEL)
PFSI
PennyMac Finl Svcs Inc
$86.43
+2.53%
FINANCIAL SERVICES · Cap: $4.51B
VEL
Velocity Financial Llc
$17.68
+1.84%
FINANCIAL SERVICES · Cap: $681.12M
Smart Verdict
WallStSmart Research — data-driven comparison
PennyMac Finl Svcs Inc generates 1435% more annual revenue ($3.46B vs $225.61M). VEL leads profitability with a 46.6% profit margin vs 14.5%. VEL trades at a lower P/E of 6.3x. VEL earns a higher WallStSmart Score of 66/100 (B-).
PFSI
Buy62
out of 100
Grade: C+
VEL
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-25.3%
Fair Value
$72.17
Current Price
$86.43
$14.26 premium
Margin of Safety
+84.7%
Fair Value
$128.70
Current Price
$17.68
$111.02 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 61.7%
Earnings expanding 55.5% YoY
Areas to Watch
0.6% earnings growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
Smaller company, higher risk/reward
Revenue declined 4.4%
Negative free cash flow — burning cash
Distress zone — elevated risk
Comparative Analysis Report
WallStSmart ResearchBull Case : PFSI
The strongest argument for PFSI centers on P/E Ratio, Price/Book.
Bull Case : VEL
The strongest argument for VEL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 46.6% and operating margin at 61.7%.
Bear Case : PFSI
The primary concerns for PFSI are EPS Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 5.35 is elevated, increasing financial risk.
Bear Case : VEL
The primary concerns for VEL are Market Cap, Revenue Growth, Free Cash Flow. Debt-to-equity of 9.70 is elevated, increasing financial risk.
Key Dynamics to Monitor
PFSI profiles as a value stock while VEL is a declining play — different risk/reward profiles.
PFSI carries more volatility with a beta of 1.54 — expect wider price swings.
PFSI is growing revenue faster at 5.1% — sustainability is the question.
VEL generates stronger free cash flow (-5M), providing more financial flexibility.
Bottom Line
VEL scores higher overall (66/100 vs 62/100), backed by strong 46.6% margins. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
PennyMac Finl Svcs Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
PennyMac Financial Services, Inc. is engaged in investment management and mortgage banking activities in the United States. The company is headquartered in Westlake Village, California.
Visit Website →Velocity Financial Llc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
Velocity Financial, Inc. is a real estate finance company in the United States. The company is headquartered in Westlake Village, California.
Visit Website →Compare with Other MORTGAGE FINANCE Stocks
Want to dig deeper into these stocks?