PFSI vs. HII

Last updated Jun 3, 2026

PFSI (PennyMac Financial Services, Inc.) and HII (Huntington Ingalls Industries, Inc) are both stocks. PFSI operates in Mortgage Finance (Financial Services), while HII operates in Aerospace & Defense (Industrials). Over the past 10 years, PFSI returned 20.94%/yr vs 8.47%/yr for HII. At a 0.24 correlation, their price movements are largely independent.

Performance

PFSI vs. HII - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PennyMac Financial Services, Inc. (PFSI) and Huntington Ingalls Industries, Inc (HII). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PFSI achieves a -35.82% return, which is significantly lower than HII's -13.00% return. Over the past 10 years, PFSI has outperformed HII with an annualized return of 20.94%, while HII has yielded a comparatively lower 8.47% annualized return.

PFSI

• 1D: 1.88%
• 1M: -8.46%
• YTD: -35.82%
• 6M: -35.81%
• 1Y: -9.22%
• 3Y*: 10.89%
• 5Y*: 8.42%
• 10Y*: 20.94%

HII

• 1D: -0.93%
• 1M: -18.21%
• YTD: -13.00%
• 6M: -3.69%
• 1Y: 34.03%
• 3Y*: 14.65%
• 5Y*: 8.22%
• 10Y*: 8.47%

*Multi-year figures are annualized to reflect compound growth (CAGR)

PFSI vs. HII - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
PFSI PennyMac Financial Services, Inc.	-35.82%	30.55%	16.79%	57.84%	-17.58%	7.69%	95.33%	60.72%	-3.09%	34.23%
HII Huntington Ingalls Industries, Inc	-13.00%	84.17%	-25.67%	15.16%	26.33%	12.11%	-30.46%	34.00%	-18.21%	29.48%

Correlation

The correlation between PFSI and HII is 0.17, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.17
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.27
Correlation (10Y) Calculated over the trailing 10-year period	0.24
Correlation (All Time) Calculated using the full available price history since May 10, 2013	0.24

The correlation between PFSI and HII shifts across timeframes, from 0.17 (1 year) to 0.27 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap PFSI : $4.53B HII : $11.54B
EPS PFSI : $9.41 HII : $15.37
PE Ratio PFSI : 8.93 HII : 19.11
PEG Ratio PFSI : 0.60 HII : 4.44
PS Ratio PFSI : 1.28 HII : 0.90
PB Ratio PFSI : 1.05 HII : 2.24
Total Revenue (TTM) PFSI : $3.54B HII : $12.85B
Gross Profit (TTM) PFSI : $2.50B HII : $3.34B
EBITDA (TTM) PFSI : $1.04B HII : $1.07B

Return for Risk

PFSI vs. HII — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

PFSI

PFSI Risk / Return Rank: 32
PFSI Sharpe Ratio Rank: 32
PFSI Sortino Ratio Rank: 31
PFSI Omega Ratio Rank: 32
PFSI Calmar Ratio Rank: 32
PFSI Martin Ratio Rank: 32

HII

HII Risk / Return Rank: 66
HII Sharpe Ratio Rank: 71
HII Sortino Ratio Rank: 64
HII Omega Ratio Rank: 65
HII Calmar Ratio Rank: 61
HII Martin Ratio Rank: 67

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

PFSI vs. HII - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PennyMac Financial Services, Inc. (PFSI) and Huntington Ingalls Industries, Inc (HII). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	PFSI	HII	Difference
Sharpe ratio Return per unit of total volatility	-0.20	0.99	-1.19
Sortino ratio Return per unit of downside risk	0.06	1.49	-1.43
Omega ratio Gain probability vs. loss probability	1.01	1.20	-0.19
Calmar ratio Return relative to maximum drawdown	-0.24	0.97	-1.21
Martin ratio Return relative to average drawdown	-0.45	3.27	-3.72
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PFSI vs. HII - Sharpe Ratio Comparison

The current PFSI Sharpe Ratio is -0.20, which is lower than the HII Sharpe Ratio of 0.99. The chart below compares the historical Sharpe Ratios of PFSI and HII, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	PFSI	HII	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.20	0.99	-1.19
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.23	0.27	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.28	+0.26
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.57	-0.22

Drawdowns

PFSI vs. HII - Drawdown Comparison

The maximum PFSI drawdown since its inception was -56.49%, which is greater than HII's maximum drawdown of -49.70%. Use the drawdown chart below to compare losses from any high point for PFSI and HII.

Drawdown Indicators

	PFSI	HII	Difference
Max Drawdown Largest peak-to-trough decline	-56.49%	-49.70%	-6.79%
Max Drawdown (1Y) Largest decline over 1 year	-47.92%	-35.00%	-12.92%
Max Drawdown (3Y) Largest decline over 3 years	-47.92%	-45.21%	-2.71%
Max Drawdown (5Y) Largest decline over 5 years	-47.92%	-45.21%	-2.71%
Max Drawdown (10Y) Largest decline over 10 years	-56.49%	-49.70%	-6.79%
Current Drawdown Current decline from peak	-46.94%	-35.00%	-11.94%
Average Drawdown Average peak-to-trough decline	-17.15%	-13.64%	-3.51%
Ulcer Index Depth and duration of drawdowns from previous peaks	25.59%	10.35%	+15.24%

Volatility

PFSI vs. HII - Volatility Comparison

The current volatility for PennyMac Financial Services, Inc. (PFSI) is 8.44%, while Huntington Ingalls Industries, Inc (HII) has a volatility of 13.67%. This indicates that PFSI experiences smaller price fluctuations and is considered to be less risky than HII based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PFSI	HII	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.44%	13.67%	-5.23%
Volatility (6M) Calculated over the trailing 6-month period	46.17%	29.40%	+16.77%
Volatility (1Y) Calculated over the trailing 1-year period	45.81%	34.64%	+11.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.46%	31.10%	+5.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.41%	30.58%	+8.83%

Dividends

PFSI vs. HII - Dividend Comparison

PFSI's dividend yield for the trailing twelve months is around 1.43%, less than HII's 1.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HII Huntington Ingalls Industries, Inc	1.87%	1.60%	2.78%	1.93%	2.07%	2.46%	2.48%	1.44%	1.59%	1.07%	1.14%	1.34%
PFSI PennyMac Financial Services, Inc.	1.43%	0.91%	0.98%	0.91%	1.41%	1.15%	0.82%	0.35%	1.88%	0.00%	0.00%	0.00%

Financials

PFSI vs. HII - Profitability Comparison

The chart below illustrates the profitability comparison between PennyMac Financial Services, Inc. and Huntington Ingalls Industries, Inc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

PFSI - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, PennyMac Financial Services, Inc. reported a gross profit of 530.59M and revenue of 544.98M. Therefore, the gross margin over that period was 97.4%.

HII - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Huntington Ingalls Industries, Inc reported a gross profit of 2.15B and revenue of 3.10B. Therefore, the gross margin over that period was 69.3%.

PFSI - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, PennyMac Financial Services, Inc. reported an operating income of 293.10M and revenue of 544.98M, resulting in an operating margin of 53.8%.

HII - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Huntington Ingalls Industries, Inc reported an operating income of 155.00M and revenue of 3.10B, resulting in an operating margin of 5.0%.

PFSI - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, PennyMac Financial Services, Inc. reported a net income of 82.32M and revenue of 544.98M, resulting in a net margin of 15.1%.

HII - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Huntington Ingalls Industries, Inc reported a net income of 149.00M and revenue of 3.10B, resulting in a net margin of 4.8%.

Frequently Asked Questions

Can I hold both PFSI and HII in my portfolio?

PFSI and HII have a correlation of 0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PFSI or HII?

HII has higher volatility (13.67%) compared to PFSI (8.44%). In terms of maximum drawdown, PFSI dropped -56.49% vs HII's -49.70%.

Which has better risk-adjusted returns?

HII currently has the higher Sharpe Ratio (0.99 vs -0.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.