Webster Financial vs UWM Holdings

This page compares Webster Financial and UWM Holdings across business models, financial performance and market context, offering neutral, accessible information about how the two organisations operate and relate within the sector. Educational content, not financial advice.

This page compares Webster Financial and UWM Holdings across business models, financial performance and market context, offering neutral, accessible information about how the two organisations operate...

Comparison Snapshot

Key Financial Metrics

WBS

Metric

UWMC

$10.22B

Market Cap

$9.23B

11.99%

Potential Profit

13.88%

Buy

Analyst Rating

Hold

Investment Analysis

Webster Financial

WBS

Pros

Webster Financial showed strong Q2 2025 financial performance with a 14% net income increase to $258.8 million and improved efficiency ratio to 45.4%.
The company demonstrated steady growth in loans and deposits, with a low loan-to-deposit ratio of 80.9%, supporting balance sheet strength.
Analyst consensus rates Webster Financial as a 'Strong Buy' with average price targets indicating around 24-27% upside potential for 2025.

Considerations

Webster Financial stock has declined about 21.3% since October 2024, indicating recent market headwinds or investor caution.
Despite growth, the bank operates in a competitive and cyclical banking environment, with potential exposure to economic downturns impacting loan performance.
Although profitability improved, efficiency gains may be harder to sustain long term given rising costs and regulatory demands in banking.

UWM Holdings

UWMC

Pros

UWM Holdings operates in the growing residential mortgage wholesale origination business, a sector benefiting from strong housing demand.
The company trades at a moderate price-to-sales ratio of 0.53, with a significant dividend yield of around 9.4%, attractive for income-focused investors.
UWM has shown positive revenue growth of approximately 4.8% year-over-year, indicating underlying business expansion.

Considerations

UWM Holdings reported a negative trailing twelve months diluted EPS of -0.08 and a profit margin of -0.32%, reflecting ongoing profitability challenges.
Its stock price is highly volatile, trading in a wide 52-week range from $3.80 to $9.74 with high uncertainty indicated by quantitative ratings.
The company is exposed to the highly competitive and interest-rate sensitive mortgage lending market, increasing execution and regulatory risks.

About The Companies

Webster Financial (WBS)

Webster Financial Corporation (WBS) is a US regional banking group headquartered in Waterbury, Connecticut, offering commercial and consumer banking, mortgage lending, wealth management and treasury services. With a market capitalisation around $9.25 billion, Webster serves primarily customers in the Northeast and seeks steady net interest income from lending and deposit-taking. Investors should note the company's sensitivity to interest-rate movements, regional economic conditions and credit cycles; these factors influence margins, loan performance and capital needs. Regulatory oversight and liquidity management are also important for banks of this size. Webster has historically returned capital via dividends, but past payments are not a guarantee of future payouts. This summary provides general, educational information only and is not personalised advice — suitability depends on an investor's circumstances and risk tolerance. Values can rise or fall and returns are not guaranteed; further due diligence, including reading regulatory filings and recent results, is recommended before making investment decisions.

UWM Holdings (UWMC)

UWM Holdings Corp is a prominent American company engaged in the residential mortgage lending industry. Operating through its subsidiaries, its primary business involves originating, selling, and servicing mortgage loans across the United States. The company specialises in the 'wholesale channel', meaning it works with independent mortgage brokers rather than directly with borrowers. Its focus is on originating high-quality conforming and government-backed loans that meet the standards for sale in the secondary market to entities like Fannie Mae and Freddie Mac. UWM Holdings leverages proprietary technology, such as Blink+, to streamline the application and lending process for its broker partners. As with any financial institution, its performance can be influenced by interest rate fluctuations and the overall health of the housing market. Remember that the value of investments can go down as well as up.

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Published: September 11, 2025

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A sharp drop in U.S. consumer sentiment, fueled by rising inflation and trade policy concerns, signals a potential slowdown in consumer spending. This creates an investment opportunity in defensive sectors like banking, which may prove more resilient than consumer-focused industries during periods of economic uncertainty.

Published: August 16, 2025

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Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

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Which Baskets Do They Appear In?

Fed Pivot Play: Financial Sector's Risk-Reward Trade

An unexpected drop in wholesale prices has increased the likelihood that the Federal Reserve will cut interest rates to support the economy. This potential shift in monetary policy creates opportunities for companies in sectors that are sensitive to lower borrowing costs, such as banking and financial services.

Published: September 11, 2025

Explore Basket

Defensive Banking Amid Inflation Concerns

A sharp drop in U.S. consumer sentiment, fueled by rising inflation and trade policy concerns, signals a potential slowdown in consumer spending. This creates an investment opportunity in defensive sectors like banking, which may prove more resilient than consumer-focused industries during periods of economic uncertainty.

Published: August 16, 2025

Explore Basket

Regulatory Relief for Big Banks

This carefully selected group of stocks focuses on banking institutions that could benefit from the Federal Reserve's proposal to ease regulatory standards. These companies are positioned to see reduced compliance costs and fewer operational restrictions, potentially boosting their profitability and stock performance.

Published: July 14, 2025

Explore Basket

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Comparison Snapshot