Onity Group Inc. (ONIT) vs UWM Holdings Corporation (UWMC)

Onity Group Inc. and UWM Holdings Corporation are both Mortgage Finance companies. UWM Holdings Corporation is the larger, with a market value of $2.0B against $259.1M — 7.6× the size. UWM Holdings Corporation has negative trailing earnings, so its P/E is not meaningful; Onity Group Inc. trades at 1.8×. Onity Group Inc. grew revenue faster over the last twelve months: 16.3% against 3.22%. Onity Group Inc. has the higher net margin (12.0% vs −1.66%) and the higher return on invested capital (3.23% vs 1.91%). Across the 20 metrics below, Onity Group Inc. leads on 15 and UWM Holdings Corporation on 5.

Valuation

Metric ONIT UWMC Mortgage Finance median
P/E 1.80 n/m 7.11
P/S 0.23 0.18 1.54
P/B 0.43 0.42 0.53
Price to free cash flow n/m n/m 6.59
EV/EBITDA 16.47 27.85 22.03
EV/Sales 5.95 6.51 5.95
Earnings yield 55.54% (6.56%) 2.09%
Free cash flow yield (983.61%) (798.75%) (16.97%)

Profitability

Metric ONIT UWMC Mortgage Finance median
Gross margin 100.00% 81.01% 84.40%
Operating margin 32.33% 20.72% 12.51%
Net margin 11.98% (1.66%) (0.83%)
Free cash flow margin (222.65%) (147.01%) (45.06%)
Return on equity 25.19% (2.72%) (1.16%)
Return on assets 0.95% (0.23%) 0.38%
Return on invested capital 3.23% 1.91% 0.36%

Growth

Metric ONIT UWMC Mortgage Finance median
Revenue growth (TTM) 16.27% 3.22% 11.44%
EPS growth (last fiscal year) 419.61% (7.69%) —
Revenue growth, 5-year CAGR 2.11% (13.42%) (11.16%)
Net income growth, 5-year CAGR 0.00% (61.84%) 0.00%

Health

Metric ONIT UWMC Mortgage Finance median
Debt to equity 11.41 14.86 1.22
Current ratio 16.60 1.64 1.38
Net debt to EBITDA 26.42 15.25 9.85

Dividend

Metric ONIT UWMC Mortgage Finance median
Dividend yield — 5.81% 5.81%
Payout ratio 0.00 5.71 0.00

Size

Metric ONIT UWMC Mortgage Finance median
Market cap 259.07m 1.96b 214.95m

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