Onity Group (NYSE:ONIT) versus UWM (NYSE:UWMC) Financial Review

UWM (NYSE:UWMC) and Onity Group (NYSE:ONIT) are both small-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for UWM and Onity Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UWM	1	6	1	0	2.00
Onity Group	0	0	1	1	3.50

UWM presently has a consensus price target of $7.66, indicating a potential upside of 22.89%. Onity Group has a consensus price target of $35.00, indicating a potential upside of 12.14%. Given UWM’s higher probable upside, analysts plainly believe UWM is more favorable than Onity Group.

Risk & Volatility

UWM has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500.

Valuation and Earnings

This table compares UWM and Onity Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UWM	$1.04 billion	0.57	-$13.23 million	($0.02)	-311.50
Onity Group	$1.07 billion	0.23	-$63.70 million	($0.09)	-346.78

UWM has higher earnings, but lower revenue than Onity Group. Onity Group is trading at a lower price-to-earnings ratio than UWM, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

53.6% of UWM shares are owned by institutional investors. Comparatively, 70.2% of Onity Group shares are owned by institutional investors. 94.1% of UWM shares are owned by insiders. Comparatively, 7.6% of Onity Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares UWM and Onity Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
UWM	N/A	2.88%	0.60%
Onity Group	0.16%	15.54%	0.52%

About UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.

About Onity Group

Onity Group Inc., a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. It operates through, Servicing and Originations segments. The company provides commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing, and asset management services for to owners of mortgage loans and foreclosed real estate, as well as residential mortgage loan servicing, such as forward and reverse conventional, government-insured, and non-agency loans, including the reverse mortgage loans classified as loans. It also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels. It serves primarily under the PHH Mortgage and Liberty Reverse Mortgage brands. The company was formerly known as Ocwen Financial Corporation and changed its name to Onity Group Inc. in June 2024. Onity Group Inc. was founded in 1988 and is headquartered in West Palm Beach, Florida.