Freddie Mac (OTC:FMCC – Get Free Report) and Federal Agricultural Mortgage (NYSE:AGM – Get Free Report) are both mid-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Analyst Ratings
This is a summary of current ratings for Freddie Mac and Federal Agricultural Mortgage, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freddie Mac | 0 | 0 | 0 | 0 | 0.00 |
| Federal Agricultural Mortgage | 0 | 1 | 0 | 0 | 2.00 |
Federal Agricultural Mortgage has a consensus price target of $215.00, indicating a potential upside of 7.61%. Given Federal Agricultural Mortgage’s stronger consensus rating and higher probable upside, analysts plainly believe Federal Agricultural Mortgage is more favorable than Freddie Mac.
Risk & Volatility
Institutional and Insider Ownership
68.0% of Federal Agricultural Mortgage shares are owned by institutional investors. 0.1% of Freddie Mac shares are owned by company insiders. Comparatively, 2.6% of Federal Agricultural Mortgage shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Freddie Mac and Federal Agricultural Mortgage’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freddie Mac | 9.74% | -33.18% | 0.35% |
| Federal Agricultural Mortgage | 12.59% | 20.14% | 0.67% |
Earnings & Valuation
This table compares Freddie Mac and Federal Agricultural Mortgage”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freddie Mac | $108.05 billion | 0.04 | $10.54 billion | ($0.06) | -107.48 |
| Federal Agricultural Mortgage | $358.82 million | 6.06 | $200.00 million | $15.55 | 12.85 |
Freddie Mac has higher revenue and earnings than Federal Agricultural Mortgage. Freddie Mac is trading at a lower price-to-earnings ratio than Federal Agricultural Mortgage, indicating that it is currently the more affordable of the two stocks.
Summary
Federal Agricultural Mortgage beats Freddie Mac on 10 of the 13 factors compared between the two stocks.
About Freddie Mac
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. The company purchases single-family and multifamily residential mortgage loans originated by lenders, as well as invests in mortgage loans and mortgage-related securities. 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 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, sale, securitization, and guarantee of multifamily loans and securities through the issuance of multifamily K and SB certificates; issuing and guarantying other securitization products; issuing other credit risk transfer products; and provision of other mortgage-related guarantees. It serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, brokers and dealers, and a range of lenders. The company was founded in 1970 and is headquartered in McLean, Virginia.
About Federal Agricultural Mortgage
Federal Agricultural Mortgage Corporation provides a secondary market for various loans made to borrowers in the United States. It operates through four segments: Corporate AgFinance, Farm & Ranch, Rural Utilities, and Renewable Energy. The company’s Agricultural Finance line of business engages in purchasing and retaining eligible loans and securities; guaranteeing the payment of principal and interest on securities that represent interests in or obligations secured by pools of eligible loans; servicing eligible loans; and issuing LTSPCs for eligible loans. Its Rural Infrastructure Finance line of business is involved in the purchase of rural utilities loans and renewable energy loans and guarantees of securities backed by loans, as well as LTSPCs for pools of eligible rural utilities loans; by loans for electric or telecommunications facilities by lenders organized as cooperatives to borrowers; and other financial institutions that are secured by pools of eligible loans. Federal Agricultural Mortgage Corporation was incorporated in 1987 and is headquartered in Washington, the District of Columbia.
Receive News & Ratings for Freddie Mac Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Freddie Mac and related companies with MarketBeat.com's FREE daily email newsletter.
