Freddie Mac (OTCMKTS:FMCC) versus Onity Group (NYSE:ONIT) Head-To-Head Survey

Freddie Mac (OTCMKTS:FMCC) and Onity Group (NYSE:ONIT) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Volatility & Risk

Freddie Mac has a beta of 2.1, indicating that its stock price is 110% more volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Valuation & Earnings

This table compares Freddie Mac and Onity Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freddie Mac	$122.05 billion	0.06	$11.86 billion	($0.03)	-396.00
Onity Group	$976.00 million	0.35	$33.90 million	$3.92	10.80

Freddie Mac has higher revenue and earnings than Onity Group. Freddie Mac 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 and Institutional Ownership

70.2% of Onity Group shares are held by institutional investors. 0.1% of Freddie Mac shares are held by insiders. Comparatively, 8.8% of Onity Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Freddie Mac	9.04%	-44.33%	0.34%
Onity Group	3.74%	18.99%	0.56%

Analyst Recommendations

This is a breakdown of recent recommendations for Freddie Mac and Onity Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freddie Mac	1	0	0	0	1.00
Onity Group	1	0	3	0	2.50

Freddie Mac currently has a consensus target price of $4.50, suggesting a potential downside of 62.12%. Onity Group has a consensus target price of $50.00, suggesting a potential upside of 18.09%. Given Onity Group’s stronger consensus rating and higher possible upside, analysts clearly believe Onity Group is more favorable than Freddie Mac.

Summary

Onity Group beats Freddie Mac on 10 of the 14 factors compared between the two stocks.

About Freddie Mac

Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.

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.