Better Home & Finance Holding Company (BETR) vs Onity Group Inc. (ONIT)

Better Home & Finance Holding Company and Onity Group Inc. are both Mortgage Finance companies. Onity Group Inc. is the larger, with a market value of $259.1M against $206.1M — 1.3× the size. Better Home & Finance Holding Company has negative trailing earnings, so its P/E is not meaningful; Onity Group Inc. trades at 1.8×. Better Home & Finance Holding Company grew revenue faster over the last twelve months: 57.8% against 16.3%. Onity Group Inc. has the higher net margin (12.0% vs −75.7%) and the higher return on invested capital (3.23% vs 0.00%). Across the 17 metrics below, Onity Group Inc. leads on 11 and Better Home & Finance Holding Company on 6.

Valuation

Metric BETR ONIT Mortgage Finance median
P/E n/m 1.80 7.11
P/S 0.82 0.23 1.54
P/B 3.37 0.43 0.53
Price to free cash flow n/m n/m 6.59
EV/EBITDA n/m 16.47 22.03
EV/Sales 0.35 5.95 5.95
Earnings yield (105.45%) 55.54% 2.09%
Free cash flow yield (85.05%) (983.61%) (16.97%)

Profitability

Metric BETR ONIT Mortgage Finance median
Gross margin 81.25% 100.00% 84.40%
Operating margin 0.00% 32.33% 12.51%
Net margin (75.73%) 11.98% (0.83%)
Free cash flow margin (69.77%) (222.65%) (45.06%)
Return on equity (267.67%) 25.19% (1.16%)
Return on assets (12.97%) 0.95% 0.38%
Return on invested capital 0.00% 3.23% 0.36%

Growth

Metric BETR ONIT Mortgage Finance median
Revenue growth (TTM) 57.78% 16.27% 11.44%
EPS growth (last fiscal year) 20.88% 419.61% —
Revenue growth, 5-year CAGR — 2.11% (11.16%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BETR ONIT Mortgage Finance median
Debt to equity 0.00 11.41 1.22
Current ratio 0.91 16.60 1.38
Net debt to EBITDA 0.00 26.42 9.85

Dividend

Metric BETR ONIT Mortgage Finance median
Dividend yield — — 5.81%
Payout ratio 0.00 0.00 0.00

Size

Metric BETR ONIT Mortgage Finance median
Market cap 206.08m 259.07m 214.95m

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