Farmhouse (OTCMKTS:FMHS) & Onity Group (NYSE:ONIT) Head-To-Head Review

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

Profitability

This table compares Onity Group and Farmhouse’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%
Farmhouse	-3,273.33%	N/A	N/A

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, Farmhouse has a beta of -1.08, meaning that its stock price is 208% less volatile than the S&P 500.

Insider & Institutional Ownership

70.2% of Onity Group shares are owned by institutional investors. 7.6% of Onity Group shares are owned by insiders. Comparatively, 72.4% of Farmhouse shares are owned 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.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Onity Group	$1.07 billion	0.22	-$63.70 million	($0.09)	-333.78
Farmhouse	$10,000.00	250.88	-$560,000.00	($0.03)	-4.67

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

Analyst Recommendations

This is a breakdown of current recommendations for Onity Group and Farmhouse, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Onity Group	0	0	1	1	3.50
Farmhouse	0	0	0	0	N/A

Onity Group presently has a consensus price target of $35.00, indicating a potential upside of 16.51%. Given Onity Group’s higher probable upside, analysts plainly believe Onity Group is more favorable than Farmhouse.

Summary

Onity Group beats Farmhouse on 9 of the 14 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 Farmhouse

Farmhouse, Inc. operates a platform for the legal cannabis industry. It provides @420, a Twitter handle public platform that engages with cannabis enthusiasts; WeeClub, a cannabis social network platform that enables industry professionals to connect, discover products and services, and scale their businesses; and Web3 division, which facilitates licensing opportunities between established cannabis brands and influential digital collectible holders to launch digital collectible branded products and accessories. The company’s platform serves cannabis producers, retailers, consultants, and supply chain professionals. It markets its products through media, networking, live events, partnerships, search engine optimization, and direct sales calls to existing members. The company was founded in 2014 and is based in San Francisco, California.