PennyMac Financial Services, Inc. (PFSI) vs Rocket Companies, Inc. (RKT)

PennyMac Financial Services, Inc. and Rocket Companies, Inc. are both Mortgage Finance companies. Rocket Companies, Inc. is the larger, with a market value of $42.1B against $3.5B — 12.1× the size. PennyMac Financial Services, Inc. trades at the lower P/E: 14.2× against 32.8×. Rocket Companies, Inc. grew revenue faster over the last twelve months: 94.8% against 3.54%. PennyMac Financial Services, Inc. has the higher net margin (11.7% vs 11.3%) and the lower return on invested capital (1.51% vs 2.91%). Only PennyMac Financial Services, Inc. pays a dividend (1.84%). Across the 20 metrics below, Rocket Companies, Inc. leads on 11 and PennyMac Financial Services, Inc. on 9.

Valuation

Metric PFSI RKT Mortgage Finance median
P/E 14.16 32.78 10.24
P/S 1.65 3.71 1.52
P/B 0.78 1.76 0.52
Price to free cash flow n/m 19.06 4.71
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.06% 3.05% (2.50%)
Free cash flow yield (9.21%) 5.25% (9.21%)

Profitability

Metric PFSI RKT Mortgage Finance median
Gross margin 76.78% 100.00% 81.25%
Operating margin 20.37% 25.35% 1.91%
Net margin 11.69% 11.29% (1.66%)
Free cash flow margin (15.01%) 19.44% (15.01%)
Return on equity 5.59% 7.86% (1.94%)
Return on assets 0.87% 2.78% (0.23%)
Return on invested capital 1.51% 2.91% 0.00%

Growth

Metric PFSI RKT Mortgage Finance median
Revenue growth (TTM) 3.54% 94.82% 7.49%
EPS growth (last fiscal year) 59.25% (123.81%) 20.88%
Revenue growth, 5-year CAGR (11.20%) (15.62%) (11.12%)
Net income growth, 5-year CAGR (21.18%) 0.00% 0.00%

Health

Metric PFSI RKT Mortgage Finance median
Debt to equity 3.12 1.02 0.94
Current ratio 0.29 3.77 1.07
Net debt to EBITDA 18.29 42.57 15.25

Dividend

Metric PFSI RKT Mortgage Finance median
Dividend yield 1.84% 0.00% 7.01%
Payout ratio 0.27 0.00 —

Size

Metric PFSI RKT Mortgage Finance median
Market cap 3.49b 42.06b 269.18m

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