On Deck Capital (NYSE:ONDK) and WMIH (NASDAQ:WMIH) are both small-cap finance companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, dividends, valuation, institutional ownership, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations and price targets for On Deck Capital and WMIH, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
On Deck Capital 1 5 1 0 2.00
WMIH 2 0 3 0 2.20

On Deck Capital presently has a consensus target price of $8.17, suggesting a potential upside of 18.19%. WMIH has a consensus target price of $1.66, suggesting a potential upside of 26.72%. Given WMIH’s stronger consensus rating and higher probable upside, analysts plainly believe WMIH is more favorable than On Deck Capital.

Profitability

This table compares On Deck Capital and WMIH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
On Deck Capital 1.37% 4.25% 1.10%
WMIH 229.44% 18.07% 3.40%

Valuation & Earnings

This table compares On Deck Capital and WMIH’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
On Deck Capital $350.95 million 1.47 -$11.53 million ($0.16) -43.19
WMIH $7.89 million 35.97 $25.88 million $0.01 131.00

WMIH has lower revenue, but higher earnings than On Deck Capital. On Deck Capital is trading at a lower price-to-earnings ratio than WMIH, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

On Deck Capital has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, WMIH has a beta of -1.19, suggesting that its share price is 219% less volatile than the S&P 500.

Institutional and Insider Ownership

77.1% of On Deck Capital shares are held by institutional investors. Comparatively, 36.6% of WMIH shares are held by institutional investors. 21.4% of On Deck Capital shares are held by company insiders. Comparatively, 1.7% of WMIH shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

WMIH beats On Deck Capital on 10 of the 14 factors compared between the two stocks.

On Deck Capital Company Profile

On Deck Capital, Inc. operates an online platform for small business lending in the United States, Canada, and Australia. It offers term loans and lines of credit. The company was incorporated in 2006 and is headquartered in New York, New York.

WMIH Company Profile

WMIH Corp., through its subsidiary, WM Mortgage Reinsurance Company, Inc., engages in legacy reinsurance business with respect to mortgage insurance operated in runoff mode. The company was formerly known as WMI Holdings Corp. and changed its name to WMIH Corp. in May 2015. WMIH Corp. was founded in 1889 and is headquartered in Seattle, Washington.

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