Acacia Research (NASDAQ:ACTG) and UWM (NYSE:UWMC) Head-To-Head Comparison

Acacia Research (NASDAQ:ACTG) and UWM (NYSE:UWMC) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Valuation & Earnings

This table compares Acacia Research and UWM”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Acacia Research	$285.23 million	1.43	$21.68 million	($0.18)	-23.17
UWM	$3.16 billion	0.70	$27.38 million	$0.02	69.00

UWM has higher revenue and earnings than Acacia Research. Acacia Research is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

86.7% of Acacia Research shares are owned by institutional investors. Comparatively, 53.6% of UWM shares are owned by institutional investors. 1.7% of Acacia Research shares are owned by company insiders. Comparatively, 80.9% of UWM shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Acacia Research and UWM, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Acacia Research	1	0	1	0	2.00
UWM	1	10	4	0	2.20

Acacia Research presently has a consensus price target of $6.00, suggesting a potential upside of 43.88%. UWM has a consensus price target of $2.45, suggesting a potential upside of 77.21%. Given UWM’s stronger consensus rating and higher possible upside, analysts plainly believe UWM is more favorable than Acacia Research.

Risk & Volatility

Acacia Research has a beta of 0.6, meaning that its share price is 40% less volatile than the S&P 500. Comparatively, UWM has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Profitability

This table compares Acacia Research and UWM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Acacia Research	-6.52%	1.68%	1.24%
UWM	0.55%	4.29%	0.32%

Summary

UWM beats Acacia Research on 11 of the 14 factors compared between the two stocks.

About Acacia Research

Acacia Research Corporation is an investment and intellectual property company headquartered in Irvine, California. The company acquires businesses, assets and patent portfolios that it believes have the potential to generate value through licensing, monetization, operational improvement or strategic transactions. Historically, Acacia has been primarily known for its patent licensing business. Through subsidiaries and affiliated entities, it has acquired rights to patented technologies, worked with inventors and patent owners, and pursued licensing agreements with companies that use those technologies.

About UWM

UWM Holdings Corporation operates United Wholesale Mortgage, a mortgage lender that works through independent mortgage brokers rather than originating loans directly for consumers. The company provides residential mortgage products for home purchases and refinancings, along with technology and operational support to help brokers guide borrowers through the lending process. Its offerings include conventional, government-backed and jumbo home loans. UWM serves brokers and borrowers across the United States, using its wholesale model to connect mortgage professionals with loan processing, underwriting and closing services.