UWM Holdings Corp (UWMC)vsVelocity Financial Llc (VEL)
UWMC
UWM Holdings Corp
$3.53
-2.22%
FINANCIAL SERVICES · Cap: $5.79B
VEL
Velocity Financial Llc
$17.68
+1.84%
FINANCIAL SERVICES · Cap: $681.12M
Smart Verdict
WallStSmart Research — data-driven comparison
UWM Holdings Corp generates 1433% more annual revenue ($3.46B vs $225.61M). VEL leads profitability with a 46.6% profit margin vs 0.8%. VEL trades at a lower P/E of 6.3x. VEL earns a higher WallStSmart Score of 66/100 (B-).
UWMC
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
+16.9%
Fair Value
$5.62
Current Price
$3.53
$2.09 discount
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
Strong operational efficiency at 31.0%
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
Premium valuation, high expectations priced in
3.0% revenue growth
2.8% earnings growth
0.8% margin — thin
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 : UWMC
The strongest argument for UWMC centers on Operating Margin.
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 : UWMC
The primary concerns for UWMC are P/E Ratio, Revenue Growth, EPS Growth. Thin 0.8% margins leave little buffer for downturns.
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
UWMC profiles as a value stock while VEL is a declining play — different risk/reward profiles.
UWMC carries more volatility with a beta of 1.94 — expect wider price swings.
UWMC is growing revenue faster at 3.0% — sustainability is the question.
UWMC generates stronger free cash flow (82M), providing more financial flexibility.
Bottom Line
VEL scores higher overall (66/100 vs 62/100), backed by strong 46.6% margins. UWMC offers better value entry with a 16.9% margin of safety. 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.
UWM Holdings Corp
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
UWM Holdings Corporation is engaged in the residential mortgage loan business in the United States. The company is headquartered in Pontiac, Michigan.
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.
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