LendingTree (NASDAQ:TREE – Get Free Report) and Onity Group (NYSE:ONIT – Get Free Report) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.
Volatility and Risk
LendingTree has a beta of 1.58, indicating that its share price is 58% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.
Earnings & Valuation
This table compares LendingTree and Onity Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LendingTree | $900.22 million | 0.94 | -$41.70 million | ($4.06) | -15.27 |
| Onity Group | $976.00 million | 0.34 | $33.90 million | $3.92 | 10.59 |
Onity Group has higher revenue and earnings than LendingTree. LendingTree is trading at a lower price-to-earnings ratio than Onity Group, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
68.3% of LendingTree shares are owned by institutional investors. Comparatively, 70.2% of Onity Group shares are owned by institutional investors. 23.1% of LendingTree shares are owned by insiders. Comparatively, 8.8% of Onity Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares LendingTree and Onity Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LendingTree | -5.33% | 25.79% | 3.46% |
| Onity Group | 3.74% | 18.99% | 0.56% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for LendingTree and Onity Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LendingTree | 0 | 1 | 7 | 1 | 3.00 |
| Onity Group | 0 | 0 | 3 | 0 | 3.00 |
LendingTree currently has a consensus target price of $65.3750, indicating a potential upside of 5.44%. Onity Group has a consensus target price of $50.00, indicating a potential upside of 20.46%. Given Onity Group’s higher probable upside, analysts plainly believe Onity Group is more favorable than LendingTree.
About LendingTree
LendingTree, Inc., through its subsidiary, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, and home equity loans and lines of credit; and real estate brokerage services. The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as debt settlement services. The Insurance segment includes information, tools, and access to insurance quote products, including home, automobile, and health and Medicare through which consumers are matched with insurance lead aggregators to obtain insurance offers and policies. In addition, the company offers QuoteWizard, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 1996 and is based in Charlotte, North Carolina.
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.
Receive News & Ratings for LendingTree Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LendingTree and related companies with MarketBeat.com's FREE daily email newsletter.
