Ocwen Financial (NYSE:OCN) vs. Nuveen Churchill Direct Lending (NYSE:NCDL) Head-To-Head Analysis

Ocwen Financial (NYSE:OCN) and Nuveen Churchill Direct Lending (NYSE:NCDL) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, valuation, profitability and risk.

Institutional and Insider Ownership

70.2% of Ocwen Financial shares are owned by institutional investors. 5.8% of Ocwen Financial shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Ocwen Financial and Nuveen Churchill Direct Lending’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocwen Financial	-5.97%	10.21%	0.34%
Nuveen Churchill Direct Lending	46.95%	11.91%	4.89%

Valuation and Earnings

This table compares Ocwen Financial and Nuveen Churchill Direct Lending’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocwen Financial	$1.07 billion	0.18	-$63.70 million	($8.55)	-2.95
Nuveen Churchill Direct Lending	$161.76 million	5.95	$75.94 million	N/A	N/A

Nuveen Churchill Direct Lending has lower revenue, but higher earnings than Ocwen Financial.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Ocwen Financial and Nuveen Churchill Direct Lending, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocwen Financial	0	1	1	0	2.50
Nuveen Churchill Direct Lending	0	3	3	0	2.50

Ocwen Financial currently has a consensus price target of $39.00, indicating a potential upside of 54.76%. Nuveen Churchill Direct Lending has a consensus price target of $18.50, indicating a potential upside of 5.41%. Given Ocwen Financial’s higher possible upside, equities research analysts clearly believe Ocwen Financial is more favorable than Nuveen Churchill Direct Lending.

Summary

Nuveen Churchill Direct Lending beats Ocwen Financial on 6 of the 10 factors compared between the two stocks.

About Ocwen Financial

Ocwen Financial Corporation, a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. It operates through, Servicing and Originations segments. The company provides commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing, and asset management services for to owners of mortgage loans and foreclosed real estate, as well as residential mortgage loan servicing, such as forward and reverse conventional, government-insured, and non-agency loans, including the reverse mortgage loans classified as loans. It also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels. It serves primarily under the PHH Mortgage and Liberty Reverse Mortgage brands. Ocwen Financial Corporation was founded in 1988 and is headquartered in West Palm Beach, Florida.

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.