Onity Group (NYSE:ONIT) & Finance of America Companies (NYSE:FOA) Head to Head Analysis

Onity Group (NYSE:ONIT) and Finance of America Companies (NYSE:FOA) are both small-cap finance companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onity Group	$1.07 billion	0.22	-$63.70 million	($0.09)	-329.44
Finance of America Companies	$234.25 million	0.52	-$80.09 million	($3.30)	-3.70

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

Profitability

This table compares Onity Group and Finance of America Companies’ 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%
Finance of America Companies	N/A	-25.01%	-0.20%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Onity Group and Finance of America Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onity Group	0	0	1	1	3.50
Finance of America Companies	0	0	2	0	3.00

Onity Group presently has a consensus target price of $35.00, indicating a potential upside of 18.04%. Finance of America Companies has a consensus target price of $17.00, indicating a potential upside of 39.23%. Given Finance of America Companies’ higher possible upside, analysts clearly believe Finance of America Companies is more favorable than Onity Group.

Risk & Volatility

Onity Group has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.

Insider and Institutional Ownership

70.2% of Onity Group shares are owned by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are owned by institutional investors. 7.6% of Onity Group shares are owned by company insiders. Comparatively, 15.6% of Finance of America Companies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Onity Group beats Finance of America Companies on 9 of the 15 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 Finance of America Companies

Finance of America Companies Inc. a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.