WallStSmart

Velocity Financial Llc (VEL)vsWalker & Dunlop Inc (WD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Walker & Dunlop Inc generates 322% more annual revenue ($1.20B vs $284.11M). VEL leads profitability with a 37.9% profit margin vs 3.3%. VEL trades at a lower P/E of 6.7x. VEL earns a higher WallStSmart Score of 64/100 (C+).

VEL

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.41

WD

Hold

46

out of 100

Grade: D+

Growth: 2.0Profit: 4.0Value: 5.0Quality: 3.0
Piotroski: 2/9Altman Z: 0.65

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

VEL5 strengths · Avg: 9.6/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
52.1%10/10

Strong operational efficiency at 52.1%

Revenue GrowthGrowth
22.7%8/10

Revenue surging 22.7% year-over-year

WD1 strengths · Avg: 10.0/10
Price/BookValuation
0.8x10/10

Reasonable price relative to book value

Areas to Watch

VEL4 concerns · Avg: 2.0/10
Market CapQuality
$727.64M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-6.9%2/10

Earnings declined 6.9%

Altman Z-ScoreHealth
0.412/10

Distress zone — elevated risk

Debt/EquityHealth
9.771/10

Elevated debt levels

WD4 concerns · Avg: 3.3/10
P/E RatioValuation
37.6x4/10

Premium valuation, high expectations priced in

Market CapQuality
$1.42B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
4.2%3/10

ROE of 4.2% — below average capital efficiency

Profit MarginProfitability
3.3%3/10

3.3% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : VEL

The strongest argument for VEL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 52.1%. Revenue growth of 22.7% demonstrates continued momentum.

Bull Case : WD

The strongest argument for WD centers on Price/Book. PEG of 1.09 suggests the stock is reasonably priced for its growth.

Bear Case : VEL

The primary concerns for VEL are Market Cap, EPS Growth, Altman Z-Score. Debt-to-equity of 9.77 is elevated, increasing financial risk.

Bear Case : WD

The primary concerns for WD are P/E Ratio, Market Cap, Return on Equity. Thin 3.3% margins leave little buffer for downturns.

Key Dynamics to Monitor

VEL profiles as a growth stock while WD is a value play — different risk/reward profiles.

WD carries more volatility with a beta of 1.44 — expect wider price swings.

VEL is growing revenue faster at 22.7% — sustainability is the question.

WD generates stronger free cash flow (23M), providing more financial flexibility.

Bottom Line

VEL scores higher overall (64/100 vs 46/100), backed by strong 37.9% margins and 22.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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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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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