UWM (NYSE:UWMC – Get Free Report) and Forge Global (NYSE:FRGE – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.
Insider & Institutional Ownership
53.6% of UWM shares are owned by institutional investors. Comparatively, 40.7% of Forge Global shares are owned by institutional investors. 80.3% of UWM shares are owned by company insiders. Comparatively, 4.5% of Forge Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares UWM and Forge Global’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| UWM | 1.92% | 19.01% | 1.85% |
| Forge Global | -71.87% | -29.06% | -24.63% |
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| UWM | $3.16 billion | 0.97 | $27.38 million | $0.27 | 7.10 |
| Forge Global | $92.88 million | 6.71 | -$66.33 million | ($5.20) | -8.65 |
UWM has higher revenue and earnings than Forge Global. Forge Global is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for UWM and Forge Global, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| UWM | 1 | 7 | 6 | 0 | 2.36 |
| Forge Global | 1 | 4 | 0 | 0 | 1.80 |
UWM currently has a consensus target price of $4.65, indicating a potential upside of 142.69%. Forge Global has a consensus target price of $45.00, indicating a potential upside of 0.00%. Given UWM’s stronger consensus rating and higher possible upside, equities analysts plainly believe UWM is more favorable than Forge Global.
Volatility and Risk
UWM has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Forge Global has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500.
Summary
UWM beats Forge Global on 12 of the 14 factors compared between the two stocks.
About UWM
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.
About Forge Global
Forge Global Holdings, Inc. operates a financial services platform in California. The company's platform solutions include trading solutions, a platform that connects investors with private company stockholders and enables them to facilitate private share transactions; and custody solutions, a non-depository trust company that enables clients to securely custody and manage assets through an online portal. It also provides data solutions, such as information and insight to navigate, analyze, and make investment decisions to market participants in the private market. The company was founded in 2014 and is headquartered in San Francisco, California.
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