Onity Group Inc. (ONIT) vs Rocket Companies, Inc. (RKT)

Onity Group Inc. and Rocket Companies, Inc. are both Mortgage Finance companies. Rocket Companies, Inc. is the larger, with a market value of $31.4B against $222.8M — 140.7× the size. Onity Group Inc. trades at the lower P/E: 1.5× against 71.9×. Rocket Companies, Inc. grew revenue faster over the last twelve months: 98.6% against 16.3%. Onity Group Inc. has the higher net margin (12.0% vs 4.77%) and the higher return on invested capital (3.23% vs 0.87%). Across the 17 metrics below, Onity Group Inc. leads on 12 and Rocket Companies, Inc. on 5.

Valuation

Metric ONIT RKT Mortgage Finance median
P/E 1.50 71.87 6.65
P/S 0.19 3.10 1.42
P/B 0.35 1.30 0.46
Price to free cash flow n/m 194.75 6.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 66.74% 1.39% 2.41%
Free cash flow yield (1,181.94%) 0.51% (19.29%)

Profitability

Metric ONIT RKT Mortgage Finance median
Gross margin 100.00% 100.00% 84.40%
Operating margin 32.33% 15.84% 12.51%
Net margin 11.98% 4.77% (0.83%)
Free cash flow margin (222.65%) 1.59% (45.06%)
Return on equity 25.19% 3.04% (1.16%)
Return on assets 0.95% 1.03% 0.38%
Return on invested capital 3.23% 0.87% 0.36%

Growth

Metric ONIT RKT Mortgage Finance median
Revenue growth (TTM) 16.27% 98.61% 11.44%
EPS growth (last fiscal year) 419.61% (123.81%) 6.60%
Revenue growth, 5-year CAGR 2.11% (15.62%) (11.16%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ONIT RKT Mortgage Finance median
Debt to equity 11.41 1.16 1.22
Current ratio 16.60 4.85 1.38
Net debt to EBITDA 26.42 42.57 9.85

Dividend

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

Size

Metric ONIT RKT Mortgage Finance median
Market cap 222.81m 31.35b 198.15m

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