PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.56B
5Y Perf.+160.5%
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Stock Comparison
PFSI vs PMT
Revenue, margins, valuation, and 5-year total return — side by side.
PMT
PennyMac Mortgage Investment Trust
REIT - Mortgage
Market Cap$1.06B
5Y Perf.+10.2%
PFSI vs PMT — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | PFSI | PMT |
|---|---|---|
| Industry | Financial - Mortgages | REIT - Mortgage |
| Market Cap | $4.56B | $1.06B |
| Revenue (TTM) | $4.36B | $1.06B |
| Net Income (TTM) | $507M | $132M |
| Gross Margin | 91.4% | 88.9% |
| Operating Margin | 34.6% | 71.8% |
| Forward P/E | 7.1x | 7.8x |
| Total Debt | $23.06B | $19.09B |
| Cash & Equiv. | $302M | $272M |
PFSI vs PMT — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
PFSI
PMT
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| PennyMac Financial … (PFSI) | 100 | 260.5 | +160.5% |
| PennyMac Mortgage I… (PMT) | 100 | 110.2 | +10.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: PFSI vs PMT
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PMT leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and profitability and margin quality. PennyMac Financial Services, Inc. is the stronger pick specifically for valuation and capital efficiency and dividend income and shareholder returns. This set spans 2 sectors — these stocks serve different portfolio roles, not just different price points.
PFSI
PennyMac Financial Services, Inc.
The Banking Pick
PFSI is the clearest fit if your priority is long-term compounding and sleep-well-at-night.
- 6.0% 10Y total return vs PMT's 121.8%
- Lower volatility, beta 0.93, current ratio 0.04x
- Lower P/E (7.1x vs 7.8x)
Best for: long-term compounding and sleep-well-at-night
PMT
PennyMac Mortgage Investment Trust
The Real Estate Income Play
PMT carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 0 yrs, beta 0.71, yield 13.2%
- Rev growth 245.8%, EPS growth -27.7%
- Beta 0.71, yield 13.2%, current ratio 0.03x
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PMT | 245.8% FFO/revenue growth vs PFSI's 173.8% |
| Value | PFSI | Lower P/E (7.1x vs 7.8x) |
| Quality / Margins | PMT | 12.4% margin vs PFSI's 11.5% |
| Stability / Safety | PMT | Beta 0.71 vs PFSI's 0.93 |
| Dividends | PFSI | 1.3% yield, 2-year raise streak, vs PMT's 13.2% |
| Momentum (1Y) | PMT | +7.0% vs PFSI's -9.2% |
| Efficiency (ROA) | PFSI | 1.8% ROA vs PMT's 0.7%, ROIC 4.4% vs 6.0% |
PFSI vs PMT — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
PFSI vs PMT — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPFSILAGGINGPMT
PMTPennyMac Mortgage Inv…
2leads
PFSIPennyMac Financial Se…
2leads
6 Total Categories
CATEGORYLEADERvs PMTMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
Tied
—
Valuation MetricsMultiples, price ratios, and targets
PFSI3/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PMT5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
PFSI4/6
Risk & VolatilityBeta, volatility, and downside exposure
PMT2/2
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
Evenly matched — PFSI and PMT each lead in 2 of 4 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 4.1x PMT's $1.1B. Profitability is closely matched — net margins range from 12.4% (PMT) to 11.5% (PFSI).
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| RevenueTrailing 12 months | $4.4B | $1.1B |
| EBITDAEarnings before interest/tax | $1.0B | $967M |
| Net IncomeAfter-tax profit | $507M | $132M |
| Free Cash FlowCash after capex | -$3.8B | -$9.1B |
| Gross MarginGross profit ÷ Revenue | +91.4% | +88.9% |
| Operating MarginEBIT ÷ Revenue | +34.6% | +71.8% |
| Net MarginNet income ÷ Revenue | +11.5% | +12.4% |
| FCF MarginFCF ÷ Revenue | -32.4% | -8.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | -98.2% |
| EPS Growth (YoY)Latest quarter vs prior year | +7.7% | — |
Evenly matched — PFSI and PMT each lead in 2 of 4 comparable metrics.
Valuation Metrics
PFSI leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
At 9.4x trailing earnings, PFSI trades at a 23% valuation discount to PMT's 12.3x P/E. On an enterprise value basis, PFSI's 18.1x EV/EBITDA is more attractive than PMT's 20.6x.
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| Market CapShares × price | $4.6B | $1.1B |
| Enterprise ValueMkt cap + debt − cash | $27.3B | $19.9B |
| Trailing P/EPrice ÷ TTM EPS | 9.41x | 12.25x |
| Forward P/EPrice ÷ next-FY EPS est. | 7.08x | 7.78x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.41x |
| EV / EBITDAEnterprise value multiple | 18.07x | 20.61x |
| Price / SalesMarket cap ÷ Revenue | 1.05x | 0.60x |
| Price / BookPrice ÷ Book value/share | 1.09x | 0.56x |
| Price / FCFMarket cap ÷ FCF | — | 7.42x |
PFSI leads this category, winning 3 of 5 comparable metrics.
Profitability & Efficiency
PMT leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
PFSI delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $7 for PMT. PFSI carries lower financial leverage with a 5.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to PMT's 10.12x.
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| ROE (TTM)Return on equity | +12.0% | +7.1% |
| ROA (TTM)Return on assets | +1.8% | +0.7% |
| ROICReturn on invested capital | +4.4% | +6.0% |
| ROCEReturn on capital employed | +10.4% | +13.2% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 5.35x | 10.12x |
| Net DebtTotal debt minus cash | $22.8B | $18.8B |
| Cash & Equiv.Liquid assets | $302M | $272M |
| Total DebtShort + long-term debt | $23.1B | $19.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.96x | 1.11x |
PMT leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
PFSI leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PFSI five years ago would be worth $15,353 today (with dividends reinvested), compared to $10,172 for PMT. Over the past 12 months, PMT leads with a +7.0% total return vs PFSI's -9.2%. The 3-year compound annual growth rate (CAGR) favors PFSI at 15.7% vs PMT's 12.8% — a key indicator of consistent wealth creation.
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| YTD ReturnYear-to-date | -33.3% | -0.9% |
| 1-Year ReturnPast 12 months | -9.2% | +7.0% |
| 3-Year ReturnCumulative with dividends | +54.9% | +43.5% |
| 5-Year ReturnCumulative with dividends | +53.5% | +1.7% |
| 10-Year ReturnCumulative with dividends | +598.9% | +121.8% |
| CAGR (3Y)Annualised 3-year return | +15.7% | +12.8% |
PFSI leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
PMT leads this category, winning 2 of 2 comparable metrics.
Risk & Volatility
PMT is the less volatile stock with a 0.71 beta — it tends to amplify market swings less than PFSI's 0.93 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. PMT currently trades 87.8% from its 52-week high vs PFSI's 54.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.93x | 0.71x |
| 52-Week HighHighest price in past year | $160.36 | $13.81 |
| 52-Week LowLowest price in past year | $82.67 | $11.14 |
| % of 52W HighCurrent price vs 52-week peak | +54.6% | +87.8% |
| RSI (14)Momentum oscillator 0–100 | 47.2 | 53.3 |
| Avg Volume (50D)Average daily shares traded | 601K | 1.0M |
PMT leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Evenly matched — PFSI and PMT each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates PFSI as "Buy" and PMT as "Buy". Consensus price targets imply 63.5% upside for PFSI (target: $143) vs 23.7% for PMT (target: $15). For income investors, PMT offers the higher dividend yield at 13.21% vs PFSI's 1.33%.
| Metric | PFSIPennyMac Financia… | PMTPennyMac Mortgage… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $143.00 | $15.00 |
| # AnalystsCovering analysts | 20 | 26 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | +13.2% |
| Dividend StreakConsecutive years of raises | 2 | 0 |
| Dividend / ShareAnnual DPS | $1.16 | $1.60 |
| Buyback YieldShare repurchases ÷ mkt cap | +0.1% | +0.1% |
Evenly matched — PFSI and PMT each lead in 1 of 2 comparable metrics.
Key Takeaway
PFSI leads in 2 of 6 categories (Valuation Metrics, Total Returns). PMT leads in 2 (Profitability & Efficiency, Risk & Volatility). 2 tied.
Best OverallPennyMac Financial Services… (PFSI)Leads 2 of 6 categories
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PFSI vs PMT: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is PFSI or PMT a better buy right now?
For growth investors, PennyMac Mortgage Investment Trust (PMT) is the stronger pick with 245.
8% revenue growth year-over-year, versus 173. 8% for PennyMac Financial Services, Inc. (PFSI). PennyMac Financial Services, Inc. (PFSI) offers the better valuation at 9. 4x trailing P/E (7. 1x forward), making it the more compelling value choice. Analysts rate PennyMac Financial Services, Inc. (PFSI) a "Buy" — based on 20 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — PFSI or PMT?
On trailing P/E, PennyMac Financial Services, Inc.
(PFSI) is the cheapest at 9. 4x versus PennyMac Mortgage Investment Trust at 12. 3x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 1x.
03Which is the better long-term investment — PFSI or PMT?
Over the past 5 years, PennyMac Financial Services, Inc.
(PFSI) delivered a total return of +53. 5%, compared to +1. 7% for PennyMac Mortgage Investment Trust (PMT). Over 10 years, the gap is even starker: PFSI returned +598. 9% versus PMT's +121. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — PFSI or PMT?
By beta (market sensitivity over 5 years), PennyMac Mortgage Investment Trust (PMT) is the lower-risk stock at 0.
71β versus PennyMac Financial Services, Inc. 's 0. 93β — meaning PFSI is approximately 31% more volatile than PMT relative to the S&P 500. On balance sheet safety, PennyMac Financial Services, Inc. (PFSI) carries a lower debt/equity ratio of 5% versus 10% for PennyMac Mortgage Investment Trust — giving it more financial flexibility in a downturn.
05Which is growing faster — PFSI or PMT?
By revenue growth (latest reported year), PennyMac Mortgage Investment Trust (PMT) is pulling ahead at 245.
8% versus 173. 8% for PennyMac Financial Services, Inc. (PFSI). On earnings-per-share growth, the picture is similar: PennyMac Financial Services, Inc. grew EPS 59. 2% year-over-year, compared to -27. 7% for PennyMac Mortgage Investment Trust. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — PFSI or PMT?
PennyMac Financial Services, Inc.
(PFSI) is the more profitable company, earning 11. 5% net margin versus 7. 3% for PennyMac Mortgage Investment Trust — meaning it keeps 11. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PMT leads at 79. 0% versus 34. 6% for PFSI. At the gross margin level — before operating expenses — PMT leads at 91. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is PFSI or PMT more undervalued right now?
On forward earnings alone, PennyMac Financial Services, Inc.
(PFSI) trades at 7. 1x forward P/E versus 7. 8x for PennyMac Mortgage Investment Trust — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 63. 5% to $143. 00.
08Which pays a better dividend — PFSI or PMT?
All stocks in this comparison pay dividends.
PennyMac Mortgage Investment Trust (PMT) offers the highest yield at 13. 2%, versus 1. 3% for PennyMac Financial Services, Inc. (PFSI).
09Is PFSI or PMT better for a retirement portfolio?
For long-horizon retirement investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 93), 1. 3% yield, +598. 9% 10Y return). Both have compounded well over 10 years (PFSI: +598. 9%, PMT: +121. 8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between PFSI and PMT?
These companies operate in different sectors (PFSI (Financial Services) and PMT (Real Estate)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.
These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(PFSI: 173.8% · PMT: -98.2%)Net Margin>
%
(PFSI: 11.5% · PMT: 12.4%)P/E Ratio<
x
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