WallStSmart

PennyMac Finl Svcs Inc (PFSI)vsWalker & Dunlop Inc (WD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

PennyMac Finl Svcs Inc generates 198% more annual revenue ($3.46B vs $1.16B). PFSI leads profitability with a 14.5% profit margin vs 4.9%. WD appears more attractively valued with a PEG of 1.25. PFSI earns a higher WallStSmart Score of 62/100 (C+).

PFSI

Buy

62

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 4.7Quality: 3.3
Piotroski: 3/9

WD

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 6.5Value: 7.3Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

PFSISignificantly Overvalued (-25.3%)

Margin of Safety

-25.3%

Fair Value

$72.17

Current Price

$86.43

$14.26 premium

UndervaluedFair: $72.17Overvalued
WDSignificantly Overvalued (-21.1%)

Margin of Safety

-21.1%

Fair Value

$50.77

Current Price

$45.07

$5.70 premium

UndervaluedFair: $50.77Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

PFSI2 strengths · Avg: 10.0/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

WD1 strengths · Avg: 10.0/10
Price/BookValuation
0.9x10/10

Reasonable price relative to book value

Areas to Watch

PFSI4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.6%4/10

0.6% earnings growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
4.672/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.64B2/10

Negative free cash flow — burning cash

WD4 concerns · Avg: 3.5/10
P/E RatioValuation
27.5x4/10

Moderate valuation

Revenue GrowthGrowth
0.0%4/10

0.0% revenue growth

Market CapQuality
$1.54B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
3.3%3/10

ROE of 3.3% — below average capital efficiency

Comparative Analysis Report

WallStSmart Research

Bull Case : PFSI

The strongest argument for PFSI centers on P/E Ratio, Price/Book.

Bull Case : WD

The strongest argument for WD centers on Price/Book. PEG of 1.25 suggests the stock is reasonably priced for its growth.

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 : WD

The primary concerns for WD are P/E Ratio, Revenue Growth, Market Cap. Thin 4.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

WD carries more volatility with a beta of 1.56 — expect wider price swings.

PFSI is growing revenue faster at 5.1% — sustainability is the question.

WD generates stronger free cash flow (796M), providing more financial flexibility.

Monitor MORTGAGE FINANCE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

PFSI scores higher overall (62/100 vs 59/100). Both earn "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.

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Walker & Dunlop Inc

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

Walker & Dunlop, Inc. originates, sells and services a variety of commercial and multifamily real estate financing products and services for real estate owners and developers in the United States. The company is headquartered in Bethesda, Maryland.

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