Rocket Companies, Inc. (RKT) vs Velocity Financial, Inc. (VEL)

Rocket Companies, Inc. and Velocity Financial, Inc. are both Mortgage Finance companies. Rocket Companies, Inc. is the larger, with a market value of $31.4B against $584.7M — 53.6× the size. Velocity Financial, Inc. trades at the lower P/E: 5.3× against 71.9×. Rocket Companies, Inc. grew revenue faster over the last twelve months: 98.6% against 32.4%. Rocket Companies, Inc. has the higher net margin (4.77% vs 0.00%) and the higher return on invested capital (0.87% vs 0.00%). Across the 19 metrics below, Velocity Financial, Inc. leads on 12 and Rocket Companies, Inc. on 7.

Valuation

Metric RKT VEL Mortgage Finance median
P/E 71.87 5.33 6.65
P/S 3.10 1.82 1.42
P/B 1.30 0.79 0.46
Price to free cash flow 194.75 6.32 6.32
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 1.39% 18.76% 2.41%
Free cash flow yield 0.51% 15.83% (19.29%)

Profitability

Metric RKT VEL Mortgage Finance median
Gross margin 100.00% 0.00% 84.40%
Operating margin 15.84% 0.00% 12.51%
Net margin 4.77% 0.00% (0.83%)
Free cash flow margin 1.59% 0.00% (45.06%)
Return on equity 3.04% 16.02% (1.16%)
Return on assets 1.03% 1.47% 0.38%
Return on invested capital 0.87% 0.00% 0.36%

Growth

Metric RKT VEL Mortgage Finance median
Revenue growth (TTM) 98.61% 32.40% 11.44%
EPS growth (last fiscal year) (123.81%) 43.98% 6.60%
Revenue growth, 5-year CAGR (15.62%) 20.68% (11.16%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric RKT VEL Mortgage Finance median
Debt to equity 1.16 9.29 1.22
Current ratio 4.85 42.53 1.38
Net debt to EBITDA 42.57 28.41 9.85

Dividend

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

Size

Metric RKT VEL Mortgage Finance median
Market cap 31.35b 584.72m 198.15m

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