Contrasting Ocwen Financial Corporation (OCN) & Its Competitors
Ocwen Financial Corporation (NYSE: OCN) is one of 26 public companies in the “Retail & Mortgage Banks” industry, but how does it contrast to its peers? We will compare Ocwen Financial Corporation to related companies based on the strength of its risk, analyst recommendations, earnings, profitability, valuation, dividends and institutional ownership.
Institutional and Insider Ownership
48.5% of Ocwen Financial Corporation shares are owned by institutional investors. Comparatively, 53.5% of shares of all “Retail & Mortgage Banks” companies are owned by institutional investors. 2.4% of Ocwen Financial Corporation shares are owned by company insiders. Comparatively, 12.1% of shares of all “Retail & Mortgage Banks” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Ocwen Financial Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ocwen Financial Corporation||-5.95%||-12.41%||-1.01%|
|Ocwen Financial Corporation Competitors||14.86%||-27.43%||0.88%|
Volatility and Risk
Ocwen Financial Corporation has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500. Comparatively, Ocwen Financial Corporation’s peers have a beta of 0.83, suggesting that their average share price is 17% less volatile than the S&P 500.
This is a summary of recent ratings for Ocwen Financial Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ocwen Financial Corporation||0||5||0||0||2.00|
|Ocwen Financial Corporation Competitors||109||454||489||12||2.38|
Ocwen Financial Corporation presently has a consensus price target of $3.33, suggesting a potential downside of 14.31%. As a group, “Retail & Mortgage Banks” companies have a potential upside of 24.96%. Given Ocwen Financial Corporation’s peers stronger consensus rating and higher probable upside, analysts plainly believe Ocwen Financial Corporation has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Ocwen Financial Corporation and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ocwen Financial Corporation||$1.32 billion||$352.81 million||-6.27|
|Ocwen Financial Corporation Competitors||$678.45 million||$169.32 million||12.17|
Ocwen Financial Corporation has higher revenue and earnings than its peers. Ocwen Financial Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Ocwen Financial Corporation peers beat Ocwen Financial Corporation on 8 of the 12 factors compared.
Ocwen Financial Corporation Company Profile
Ocwen Financial Corporation is a financial services holding company. The Company, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, and Corporate Items and Other. The Company’s Servicing segment consists of its residential servicing business. The Company’s Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans. The Company’s Corporate Items and Other segment includes revenues and expenses of Automotive Capital Services (ACS) and its other business activities. Its servicing clients include some of the financial institutions in the United States, including the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae) and non-Agency residential mortgage-backed securities (RMBS) trusts.
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