Onity Group Inc. (ONIT) vs Velocity Financial, Inc. (VEL)

Onity Group Inc. and Velocity Financial, Inc. are both Mortgage Finance companies. Velocity Financial, Inc. is the larger, with a market value of $689.0M against $269.2M — 2.6× the size. Onity Group Inc. trades at the lower P/E: 2.0× against 6.3×. Velocity Financial, Inc. grew revenue faster over the last twelve months: 32.4% against 14.4%. Onity Group Inc. has the higher net margin (10.8% vs 0.00%) and the higher return on invested capital (0.00% vs −3.59%). Across the 15 metrics below, Onity Group Inc. leads on 11 and Velocity Financial, Inc. on 4.

Valuation

Metric ONIT VEL Mortgage Finance median
P/E 2.03 6.32 10.24
P/S 0.23 2.17 1.52
P/B 0.43 0.90 0.52
Price to free cash flow n/m 10.24 4.71
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 49.17% 15.83% (2.50%)
Free cash flow yield (851.67%) 9.76% (9.21%)

Profitability

Metric ONIT VEL Mortgage Finance median
Gross margin 100.00% 0.00% 81.25%
Operating margin 0.00% 0.00% 1.91%
Net margin 10.77% 0.00% (1.66%)
Free cash flow margin (153.58%) 0.00% (15.01%)
Return on equity 22.22% 0.00% (1.94%)
Return on assets 0.90% 0.00% (0.23%)
Return on invested capital 0.00% (3.59%) 0.00%

Growth

Metric ONIT VEL Mortgage Finance median
Revenue growth (TTM) 14.36% 32.40% 7.49%
EPS growth (last fiscal year) 419.61% 43.98% 20.88%
Revenue growth, 5-year CAGR 2.11% 20.68% (11.12%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ONIT VEL Mortgage Finance median
Debt to equity 0.00 0.00 0.94
Current ratio 0.00 0.00 1.07
Net debt to EBITDA 26.42 28.41 15.25

Dividend

Metric ONIT VEL Mortgage Finance median
Dividend yield — — 7.01%
Payout ratio — — —

Size

Metric ONIT VEL Mortgage Finance median
Market cap 269.18m 688.95m 269.18m

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