Head-To-Head Survey: Onity Group (NYSE:ONIT) and UWM (NYSE:UWMC)

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

Profitability

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

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

Earnings & Valuation

This table compares Onity Group and UWM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onity Group	$1.10 billion	0.21	-$63.70 million	$0.53	56.79
UWM	$1.04 billion	0.63	-$13.23 million	$0.03	229.50

UWM has lower revenue, but higher earnings 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.

Volatility & Risk

Onity Group has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.63, meaning that its share price is 63% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Onity Group and UWM, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onity Group	0	0	1	1	3.50
UWM	1	5	1	0	2.00

Onity Group currently has a consensus price target of $35.00, indicating a potential upside of 16.28%. UWM has a consensus price target of $7.68, indicating a potential upside of 11.53%. Given Onity Group’s stronger consensus rating and higher probable upside, research analysts clearly believe Onity Group is more favorable than UWM.

Institutional & Insider Ownership

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

Summary

Onity Group beats UWM on 9 of the 14 factors compared between the two stocks.

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.

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.