Ocwen Financial Corporation (NYSE: OCN) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it weigh in compared to its peers? We will compare Ocwen Financial Corporation to related businesses based on the strength of its profitability, institutional ownership, analyst recommendations, dividends, valuation, risk and earnings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Ocwen Financial Corporation and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocwen Financial Corporation 0 5 0 0 2.00
Ocwen Financial Corporation Competitors 108 447 480 12 2.38

Ocwen Financial Corporation presently has a consensus target price of $3.33, suggesting a potential downside of 10.39%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 27.76%. Given Ocwen Financial Corporation’s peers stronger consensus rating and higher possible upside, analysts plainly believe Ocwen Financial Corporation has less favorable growth aspects than its peers.

Profitability

This table compares Ocwen Financial Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocwen Financial Corporation -5.95% -12.41% -1.01%
Ocwen Financial Corporation Competitors 14.79% -27.48% 0.87%

Insider & Institutional Ownership

48.5% of Ocwen Financial Corporation shares are held by institutional investors. Comparatively, 54.7% of shares of all “Retail & Mortgage Banks” companies are held by institutional investors. 5.2% of Ocwen Financial Corporation shares are held by company insiders. Comparatively, 12.8% of shares of all “Retail & Mortgage Banks” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Ocwen Financial Corporation has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, Ocwen Financial Corporation’s peers have a beta of 0.83, suggesting that their average share price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares Ocwen Financial Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ocwen Financial Corporation $1.32 billion $352.81 million -6.00
Ocwen Financial Corporation Competitors $678.45 million $169.32 million 12.27

Ocwen Financial Corporation has higher revenue and earnings than its peers. Ocwen Financial Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Ocwen Financial Corporation peers beat Ocwen Financial Corporation on 8 of the 12 factors compared.

About Ocwen Financial Corporation

Ocwen Financial Corporation is a financial services holding company. The Company, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, and Corporate Items and Other. The Company’s Servicing segment consists of its residential servicing business. The Company’s Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans. The Company’s Corporate Items and Other segment includes revenues and expenses of Automotive Capital Services (ACS) and its other business activities. Its servicing clients include some of the financial institutions in the United States, including the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae) and non-Agency residential mortgage-backed securities (RMBS) trusts.

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