Comparing Federal Home Loan Mortgage (OTCMKTS:FMCC) and MCAN Mortgage (OTCMKTS:MAMTF)

MCAN Mortgage (OTCMKTS:MAMTF) and Federal Home Loan Mortgage (OTCMKTS:FMCC) are both financial services companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.

Profitability

This table compares MCAN Mortgage and Federal Home Loan Mortgage’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MCAN Mortgage	N/A	N/A	N/A
Federal Home Loan Mortgage	10.09%	-27.89%	0.35%

Analyst Ratings

This is a summary of current ratings and recommmendations for MCAN Mortgage and Federal Home Loan Mortgage, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MCAN Mortgage	0	0	0	0	N/A
Federal Home Loan Mortgage	0	0	1	0	3.00

Federal Home Loan Mortgage has a consensus price target of $2.50, suggesting a potential upside of 81.16%. Given Federal Home Loan Mortgage’s higher possible upside, analysts plainly believe Federal Home Loan Mortgage is more favorable than MCAN Mortgage.

Insider and Institutional Ownership

0.1% of MCAN Mortgage shares are held by institutional investors. 0.1% of Federal Home Loan Mortgage shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares MCAN Mortgage and Federal Home Loan Mortgage’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MCAN Mortgage	N/A	N/A	N/A	C$1.49	7.74
Federal Home Loan Mortgage	$108.05 billion	N/A	$10.54 billion	($0.03)	-46.00

Federal Home Loan Mortgage has higher revenue and earnings than MCAN Mortgage. Federal Home Loan Mortgage is trading at a lower price-to-earnings ratio than MCAN Mortgage, indicating that it is currently the more affordable of the two stocks.

Summary

Federal Home Loan Mortgage beats MCAN Mortgage on 6 of the 10 factors compared between the two stocks.

About MCAN Mortgage

MCAN Mortgage Corporation operates as a loan and mortgage investment corporation in Canada. The company engages in the real estate lending and investing activities, including residential mortgage, residential construction, non-residential construction, and commercial loans, as well as portfolio of real estate investments trusts and private investment activities. It also provides term deposits through a network of independent financial agents. The company was formerly known as MCAP Inc. and changed its name to MCAN Mortgage Corporation in September 2006. The company was founded in 1980 and is headquartered in Toronto, Canada.

About Federal Home Loan Mortgage

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.