Onity Group (NYSE:ONIT – Get Free Report) and Finance of America Companies (NYSE:FOA – Get Free Report) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, earnings, institutional ownership, profitability and dividends.
Valuation and Earnings
This table compares Onity Group and Finance of America Companies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Onity Group | $1.10 billion | 0.21 | -$63.70 million | $0.53 | 56.68 |
| Finance of America Companies | $301.87 million | 3.56 | -$80.09 million | ($1.21) | -8.98 |
Onity Group has higher revenue and earnings than Finance of America Companies. Finance of America Companies is trading at a lower price-to-earnings ratio than Onity Group, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| 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 currently has a consensus target price of $35.00, suggesting a potential upside of 16.51%. Finance of America Companies has a consensus target price of $17.00, suggesting a potential upside of 56.39%. Given Finance of America Companies’ higher probable upside, analysts clearly believe Finance of America Companies is more favorable than Onity Group.
Volatility & Risk
Onity Group has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Finance of America Companies has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.
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% |
Insider and Institutional Ownership
70.2% of Onity Group shares are held by institutional investors. Comparatively, 97.2% of Finance of America Companies shares are held by institutional investors. 7.6% of Onity Group shares are held by company insiders. Comparatively, 15.6% of Finance of America Companies shares are held 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.
Summary
Onity Group beats Finance of America Companies on 10 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.
Receive News & Ratings for Onity Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Onity Group and related companies with MarketBeat.com's FREE daily email newsletter.
