Reviewing Rithm Capital (NYSE:RITM) & StoneX Group (NASDAQ:SNEX)

Rithm Capital (NYSE:RITM) and StoneX Group (NASDAQ:SNEX) are both mid-cap finance companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Rithm Capital and StoneX Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rithm Capital	0	1	8	0	2.89
StoneX Group	0	2	1	0	2.33

Rithm Capital currently has a consensus target price of $14.44, suggesting a potential upside of 24.88%. Given Rithm Capital’s stronger consensus rating and higher possible upside, analysts clearly believe Rithm Capital is more favorable than StoneX Group.

Valuation and Earnings

This table compares Rithm Capital and StoneX Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rithm Capital	$3.01 billion	2.13	$931.50 million	$1.45	7.97
StoneX Group	$132.38 billion	0.04	$305.90 million	$5.89	17.61

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

Volatility and Risk

Rithm Capital has a beta of 1.21, indicating that its share price is 21% more volatile than the S&P 500. Comparatively, StoneX Group has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares Rithm Capital and StoneX Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rithm Capital	17.08%	18.82%	2.82%
StoneX Group	0.23%	15.27%	0.87%

Institutional & Insider Ownership

44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 75.9% of StoneX Group shares are held by institutional investors. 0.4% of Rithm Capital shares are held by insiders. Comparatively, 11.7% of StoneX Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Rithm Capital beats StoneX Group on 9 of the 14 factors compared between the two stocks.

About Rithm Capital

Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.

About StoneX Group

StoneX Group Inc. operates as a global financial services network that connects companies, organizations, traders, and investors to market ecosystem worldwide. The company operates through Commercial, Institutional, Retail, and Global Payments segments. The Commercial segment provides risk management and hedging, exchange-traded and OTC products execution and clearing, voice brokerage, market intelligence, physical trading, and commodity financing and logistics services. The Institutional segment offers equity trading services to institutional clients; clearing and execution services in futures exchanges; brokerage foreign exchange services for the financial institutions and professional traders; and OTC products, as well as originates, structures, and places debt instruments in capital markets. This segment also operates as an institutional dealer in fixed income securities to serve asset managers, commercial bank trust and investment departments, broker-dealers, and insurance companies, as well as engages in asset management business. The Retail segment provides trading services and solutions in the global financial markets, including spot foreign exchange, precious metals trading, and contracts for differences; and wealth management services, as well as offers physical gold and other precious metals in various forms and denominations through Stonexbullion.com. The Global Payments segment provides customized payment, technology, and treasury services to banks and commercial businesses, charities, and non-governmental and government organizations; and pricing and payments services. The company was formerly known as INTL FCStone Inc. and changed its name to StoneX Group Inc. in July 2020. StoneX Group Inc. was founded in 1924 and is headquartered in New York, New York.