Critical Survey: UWM (NYSE:UWMC) & Onity Group (NYSE:ONIT)

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

Valuation & Earnings

This table compares UWM and Onity Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UWM	$1.04 billion	0.68	-$13.23 million	$0.03	246.67
Onity Group	$1.10 billion	0.21	-$63.70 million	$0.53	57.06

UWM has higher earnings, but lower revenue 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.

Risk & Volatility

UWM has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UWM	N/A	2.88%	0.60%
Onity Group	0.16%	15.54%	0.52%

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	1	5	1	0	2.00
Onity Group	0	0	1	1	3.50

UWM currently has a consensus target price of $7.68, suggesting a potential upside of 3.76%. Onity Group has a consensus target price of $35.00, suggesting a potential upside of 15.74%. Given Onity Group’s stronger consensus rating and higher possible upside, analysts clearly believe Onity Group is more favorable than UWM.

Insider and Institutional Ownership

53.6% of UWM shares are owned by institutional investors. Comparatively, 70.2% of Onity Group shares are owned by institutional investors. 94.1% of UWM 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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Onity Group beats UWM on 9 of the 14 factors compared between the two stocks.

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.

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.