Onity Group (NYSE:ONIT – Get Free Report) and UWM (NYSE:UWMC – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Institutional and Insider Ownership
70.2% of Onity Group shares are owned by institutional investors. Comparatively, 53.6% of UWM shares are owned by institutional investors. 7.6% of Onity Group shares are owned by company insiders. Comparatively, 94.1% of UWM shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current recommendations for Onity Group and UWM, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Onity Group | 0 | 0 | 1 | 1 | 3.50 |
UWM | 1 | 6 | 1 | 0 | 2.00 |
Volatility & Risk
Onity Group has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500.
Profitability
This table compares Onity Group and UWM’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Onity Group | 0.16% | 15.54% | 0.52% |
UWM | N/A | 2.88% | 0.60% |
Valuation and Earnings
This table compares Onity Group and UWM”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Onity Group | $1.07 billion | 0.23 | -$63.70 million | ($0.09) | -344.67 |
UWM | $1.31 billion | 0.48 | -$13.23 million | ($0.02) | -331.50 |
UWM has higher revenue and earnings than Onity Group. Onity Group is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.
Summary
UWM beats Onity Group on 8 of the 14 factors compared between the two stocks.
About Onity Group
Onity Group Inc., 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. The company was formerly known as Ocwen Financial Corporation and changed its name to Onity Group Inc. in June 2024. Onity Group Inc. was founded in 1988 and is headquartered in West Palm Beach, Florida.
About UWM
UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.
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