loanDepot (NYSE:LDI) versus Onity Group (NYSE:ONIT) Head to Head Review

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

Insider and Institutional Ownership

70.2% of Onity Group shares are owned by institutional investors. Comparatively, 39.4% of loanDepot shares are owned by institutional investors. 8.8% of Onity Group shares are owned by company insiders. Comparatively, 78.1% of loanDepot shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onity Group	$976.00 million	0.31	$33.90 million	$2.85	13.11
loanDepot	$1.06 billion	0.45	-$98.33 million	($0.45)	-3.19

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

Analyst Ratings

This is a summary of current recommendations for Onity Group and loanDepot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onity Group	0	0	2	1	3.33
loanDepot	1	2	0	0	1.67

Onity Group currently has a consensus target price of $45.00, suggesting a potential upside of 20.47%. loanDepot has a consensus target price of $1.98, suggesting a potential upside of 37.63%. Given loanDepot’s higher possible upside, analysts plainly believe loanDepot is more favorable than Onity Group.

Risk and Volatility

Onity Group has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, loanDepot has a beta of 3.39, indicating that its stock price is 239% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Onity Group	2.62%	22.67%	0.70%
loanDepot	-7.74%	-18.41%	-1.57%

Summary

Onity Group beats loanDepot on 10 of the 15 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 loanDepot

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. The company offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. It also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Irvine, California.