Onity Group (NYSE:ONIT) versus Guild (NYSE:GHLD) Financial Review

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onity Group	0	0	1	1	3.50
Guild	1	1	3	0	2.40

Onity Group presently has a consensus price target of $35.00, indicating a potential upside of 17.77%. Guild has a consensus price target of $17.50, indicating a potential upside of 21.44%. Given Guild’s higher probable upside, analysts clearly believe Guild is more favorable than Onity Group.

Earnings and Valuation

This table compares Onity Group and Guild”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	56.08
Guild	$840.17 million	1.05	-$39.01 million	$0.42	34.31

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

Insider & Institutional Ownership

70.2% of Onity Group shares are held by institutional investors. Comparatively, 17.5% of Guild shares are held by institutional investors. 7.6% of Onity Group shares are held by insiders. Comparatively, 78.5% of Guild shares are held by 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.

Profitability

This table compares Onity Group and Guild’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%
Guild	3.28%	5.83%	1.82%

Risk & Volatility

Onity Group has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Guild has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Summary

Onity Group beats Guild on 8 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 Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.