Nuveen Churchill Direct Lending (NYSE:NCDL – Get Free Report) and UWM (NYSE:UWMC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, valuation, profitability, risk, analyst recommendations and dividends.
Dividends
Nuveen Churchill Direct Lending pays an annual dividend of $1.80 per share and has a dividend yield of 10.4%. UWM pays an annual dividend of $0.40 per share and has a dividend yield of 6.3%. UWM pays out -210.5% of its earnings in the form of a dividend.
Insider & Institutional Ownership
53.6% of UWM shares are held by institutional investors. 94.2% of UWM shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Nuveen Churchill Direct Lending | $161.76 million | 5.88 | $75.94 million | N/A | N/A |
UWM | $1.31 billion | 0.46 | -$13.23 million | ($0.19) | -33.66 |
Nuveen Churchill Direct Lending has higher earnings, but lower revenue than UWM.
Analyst Ratings
This is a breakdown of recent recommendations for Nuveen Churchill Direct Lending and UWM, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Nuveen Churchill Direct Lending | 0 | 3 | 3 | 0 | 2.50 |
UWM | 2 | 6 | 2 | 0 | 2.00 |
Nuveen Churchill Direct Lending currently has a consensus price target of $18.50, indicating a potential upside of 6.69%. UWM has a consensus price target of $5.59, indicating a potential downside of 12.57%. Given Nuveen Churchill Direct Lending’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nuveen Churchill Direct Lending is more favorable than UWM.
Profitability
This table compares Nuveen Churchill Direct Lending and UWM’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Nuveen Churchill Direct Lending | 46.95% | 11.91% | 4.89% |
UWM | 0.79% | 2.45% | 0.59% |
Summary
Nuveen Churchill Direct Lending beats UWM on 9 of the 13 factors compared between the two stocks.
About Nuveen Churchill Direct Lending
Nuveen Churchill Direct Lending Corp. is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. It has elected to be regulated as a business development company. Nuveen Churchill Direct Lending Corp. is based in NEW YORK.
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.
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