Head-To-Head Analysis: Rocket Companies (NYSE:RKT) and Onity Group (NYSE:ONIT)

Rocket Companies (NYSE:RKT) and Onity Group (NYSE:ONIT) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.

Risk and Volatility

Rocket Companies has a beta of 2.44, meaning that its stock price is 144% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500.

Insider and Institutional Ownership

4.6% of Rocket Companies shares are owned by institutional investors. Comparatively, 70.2% of Onity Group shares are owned by institutional investors. 93.1% of Rocket Companies shares are owned by company insiders. Comparatively, 7.6% of Onity Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Rocket Companies and Onity Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocket Companies	0.29%	0.90%	0.36%
Onity Group	0.16%	15.54%	0.52%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Rocket Companies and Onity Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocket Companies	5	6	0	0	1.55
Onity Group	0	0	1	1	3.50

Rocket Companies currently has a consensus target price of $14.89, indicating a potential downside of 9.28%. Onity Group has a consensus target price of $35.00, indicating a potential upside of 16.16%. Given Onity Group’s stronger consensus rating and higher probable upside, analysts clearly believe Onity Group is more favorable than Rocket Companies.

Earnings & Valuation

This table compares Rocket Companies and Onity Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocket Companies	$4.43 billion	7.37	-$15.51 million	$0.11	149.18
Onity Group	$1.07 billion	0.22	-$63.70 million	($0.09)	-334.78

Rocket Companies has higher revenue and earnings than Onity Group. Onity Group is trading at a lower price-to-earnings ratio than Rocket Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Rocket Companies beats Onity Group on 8 of the 15 factors compared between the two stocks.

About Rocket Companies

Rocket Companies, Inc., a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business. It also offers Core Digital Media, a online marketing platform in the mortgage and personal financial product sectors; Rocket Money, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a software services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; Rock Connections, a sales and support platform specializing in contact center services; and Rocket Innovation Studio that recruits and mentors top technology talent. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. The company operates as a subsidiary of Rock Holdings Inc.

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.