Better Home & Finance Holding Company (BETR) vs Rocket Companies, Inc. (RKT)

Better Home & Finance Holding Company and Rocket Companies, Inc. are both Mortgage Finance companies. Rocket Companies, Inc. is the larger, with a market value of $31.4B against $204.6M — 153.3× the size. Better Home & Finance Holding Company has negative trailing earnings, so its P/E is not meaningful; Rocket Companies, Inc. trades at 71.9×. Rocket Companies, Inc. grew revenue faster over the last twelve months: 98.6% against 57.8%. Rocket Companies, Inc. has the higher net margin (4.77% vs −75.7%) and the higher return on invested capital (0.87% vs 0.00%). Across the 16 metrics below, Rocket Companies, Inc. leads on 12 and Better Home & Finance Holding Company on 4.

Valuation

Metric BETR RKT Mortgage Finance median
P/E n/m 71.87 6.65
P/S 0.78 3.10 1.42
P/B 3.21 1.30 0.46
Price to free cash flow n/m 194.75 6.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield (110.75%) 1.39% 2.41%
Free cash flow yield (89.32%) 0.51% (19.29%)

Profitability

Metric BETR RKT Mortgage Finance median
Gross margin 81.25% 100.00% 84.40%
Operating margin 0.00% 15.84% 12.51%
Net margin (75.73%) 4.77% (0.83%)
Free cash flow margin (69.77%) 1.59% (45.06%)
Return on equity (267.67%) 3.04% (1.16%)
Return on assets (12.97%) 1.03% 0.38%
Return on invested capital 0.00% 0.87% 0.36%

Growth

Metric BETR RKT Mortgage Finance median
Revenue growth (TTM) 57.78% 98.61% 11.44%
EPS growth (last fiscal year) 20.88% (123.81%) 6.60%
Revenue growth, 5-year CAGR — (15.62%) (11.16%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric BETR RKT Mortgage Finance median
Debt to equity 0.00 1.16 1.22
Current ratio 0.91 4.85 1.38
Net debt to EBITDA 0.00 42.57 9.85

Dividend

Metric BETR RKT Mortgage Finance median
Dividend yield — 0.00% 8.31%
Payout ratio — 0.00 —

Size

Metric BETR RKT Mortgage Finance median
Market cap 204.56m 31.35b 198.15m

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