Financial Review: Farmhouse (OTCMKTS:FMHS) & Onity Group (NYSE:ONIT)

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

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)	-336.33
Farmhouse	$10,000.00	259.84	-$560,000.00	($0.03)	-4.83

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.

Volatility and Risk

Onity Group has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, Farmhouse has a beta of -1.08, suggesting that its stock price is 208% less volatile than the S&P 500.

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

Analyst Recommendations

This is a summary of current ratings and target prices for Onity Group and Farmhouse, as reported by MarketBeat.com.

	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, suggesting a potential upside of 15.63%. Given Onity Group’s higher probable upside, equities research analysts plainly believe Onity Group is more favorable than Farmhouse.

Institutional and Insider Ownership

70.2% of Onity Group shares are held by institutional investors. 7.6% of Onity Group shares are held by insiders. Comparatively, 72.4% of Farmhouse shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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 regulated cannabis industry. The company provides The WeedClub, a social networking platform that enables cannabis and hemp professionals to connect, discover products and services, and scale their businesses. Its platform serves cannabis producers, retailers, consultants, and supply chain professionals. The company is based in San Francisco, California.