FMCC vs FNMA: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. FMCC and FNMA share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined FMCC and FNMA exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Freddie Mac, formally the Federal Home Loan Mortgage Corporation, is one of the two government-sponsored enterprises (GSEs) that keep the US mortgage market liquid. It does not lend to homebuyers directly. Instead it buys conforming loans from banks and mortgage companies, pools them into mortgage-backed securities, and guarantees investors timely payment of principal and interest in exchange for a guarantee fee. It also runs a large multifamily business that finances apartment buildings. Its total mortgage portfolio is roughly $3.7 trillion, and it has been in federal conservatorship, overseen by the Federal Housing Finance Agency (FHFA), since September 2008.

Full FMCC guide

Fannie Mae, formally the Federal National Mortgage Association, is a government-sponsored enterprise that sits at the center of the US housing finance system. It buys mortgages from lenders, packages them into mortgage-backed securities, and guarantees timely payment of principal and interest to investors, which keeps mortgage credit flowing and supports the 30-year fixed-rate loan. Fannie Mae does not originate loans directly; it makes most of its money from guaranty fees charged for taking on the credit risk of the loans it backs, earning a recurring stream across a guaranty book of business of roughly $4 trillion. The company reported full-year 2025 net income of about $14.4 billion and ended 2025 with net worth of about $109 billion, its fourteenth straight profitable year.

Full FNMA guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• FMCC drivers: Conservatorship exit and a public offering; Retained earnings and the capital gap.
• FNMA drivers: Recap-and-release thesis; Durable, fee-based core business.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The core risk is that FMCC common sits at the bottom of a capital structure controlled by its largest creditor. For FNMA, fNMA common is highly speculative and the risks are unusually severe.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick FMCC if you believe its drivers more; FNMA if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the FMCC and FNMA guides.

FMCC. Normal valuation metrics break down for FMCC. Freddie Mac earned roughly $12.9 billion over the trailing year and holds ~$77.8 billion of net worth, yet the common stock is valued at only ~$2.2 billion to ~$2.5 billion, a fraction of one year's profit. The reason is that common shareholders currently have no claim on those earnings: Treasury's senior preferred liquidation preference exceeds net worth, and its warrants cover ~79.9% of the common. The market cap is best read as the price of an option on a favorable conservatorship exit, and the drop from a peak near $15 in September 2025 shows the market now assigns that outcome much lower odds. Q3 2026 results are expected around October 29.

FNMA. FNMA common is unusual to value with normal metrics. Even though Fannie Mae earns billions and holds more than $100 billion of net worth, almost none of that currently accrues to common holders: Treasury sits ahead of them with senior preferred stock whose liquidation preference exceeds $200 billion, and it holds warrants for about 79.9% of the common. Data services that report earnings to common show only about $0.04 of trailing EPS, which is why the quoted P/E near 90x means little. The roughly $4.2 billion market cap, down from about $8 billion earlier in 2026, is a market-implied probability that the company exits conservatorship on terms that leave value for the common; the 67% drop this year says the market now prices that outcome as much less likely. Q3 2026 results are due October 28.

Headline figures (approximate, October 2026): FMCC shows net revenue (ttm) ~$23.7 billion (FY2025 ~$23.3B; Q2 2026 ~$6.0B), net income (ttm) ~$12.9 billion (Q1 2026 ~$3.6B, Q2 2026 ~$3.8B), net worth ~$77.8 billion at June 30, 2026, up ~20% YoY, treasury senior preferred ~$146.6B liquidation preference, rising to ~$150.4B (Sep 30, 2026); FNMA shows revenue (ttm, per yahoo finance) ~$27.8 billion, up ~9% YoY in Q2 2026, net income (fy2025) ~$14.4 billion, net income (q1 2026) ~$3.7 billion, net worth ~$109B (end 2025); ~$112.7B (Q1 2026).

FMCC and FNMA are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined FMCC and FNMA exposure against your real portfolio. It is not an investment adviser.