ONIT
Onity Group Inc.
Financial - Mortgages
Market Cap$330M
5Y Perf.+61.3%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
ONIT vs PFSI
Revenue, margins, valuation, and 5-year total return — side by side.
PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.54B
5Y Perf.-8.1%
ONIT vs PFSI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ONIT | PFSI |
|---|---|---|
| Industry | Financial - Mortgages | Financial - Mortgages |
| Market Cap | $330M | $4.54B |
| Revenue (TTM) | $1.07B | $4.36B |
| Net Income (TTM) | $175M | $507M |
| Gross Margin | 94.5% | 91.4% |
| Operating Margin | 55.3% | 34.6% |
| Forward P/E | 3.9x | 7.0x |
| Total Debt | $15.18B | $23.06B |
| Cash & Equiv. | $181M | $302M |
ONIT vs PFSI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
ONIT
PFSI
| Stock | Jun 24 | May 26 | Return |
|---|---|---|---|
| Onity Group Inc. (ONIT) | 100 | 161.3 | +61.3% |
| PennyMac Financial … (PFSI) | 100 | 91.9 | -8.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: ONIT vs PFSI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ONIT leads in 4 of 7 categories, making it the strongest pick for valuation and capital efficiency and profitability and margin quality. PennyMac Financial Services, Inc. is the stronger pick specifically for growth and revenue expansion and capital preservation and lower volatility. As sector peers, any of these can serve as alternatives in the same allocation.
ONIT
Onity Group Inc.
The Banking Pick
ONIT carries the broadest edge in this set and is the clearest fit for value and quality.
- Lower P/E (3.9x vs 7.0x)
- Efficiency ratio 0.4% vs PFSI's 0.6% (lower = leaner)
- +3.8% vs PFSI's -8.0%
Best for: value and quality
PFSI
PennyMac Financial Services, Inc.
The Banking Pick
PFSI is the clearest fit if your priority is income & stability and growth exposure.
- Dividend streak 2 yrs, beta 0.93, yield 1.3%
- Rev growth 173.8%, EPS growth 59.2%
- 6.2% 10Y total return vs ONIT's 56.9%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PFSI | 173.8% NII/revenue growth vs ONIT's -0.2% |
| Value | ONIT | Lower P/E (3.9x vs 7.0x) |
| Quality / Margins | ONIT | Efficiency ratio 0.4% vs PFSI's 0.6% (lower = leaner) |
| Stability / Safety | PFSI | Beta 0.93 vs ONIT's 1.12, lower leverage |
| Dividends | PFSI | 1.3% yield, 2-year raise streak, vs ONIT's 1.3% |
| Momentum (1Y) | ONIT | +3.8% vs PFSI's -8.0% |
| Efficiency (ROA) | ONIT | Efficiency ratio 0.4% vs PFSI's 0.6% |
ONIT vs PFSI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
ONIT vs PFSI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLONITLAGGINGPFSI
PFSIPennyMac Financial Se…
2leads
ONITOnity Group Inc.
3leads
6 Total Categories
CATEGORYLEADERvs PFSIMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ONIT3/5
Valuation MetricsMultiples, price ratios, and targets
ONIT4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
PFSI5/8
Total Returns1Y, 3Y, 5Y total returns with dividends
ONIT4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
PFSI2/2
Income & Cash Flow (Last 12 Months)
ONIT leads this category, winning 3 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 4.1x ONIT's $1.1B. ONIT is the more profitable business, keeping 17.8% of every revenue dollar as net income compared to PFSI's 11.5%.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| RevenueTrailing 12 months | $1.1B | $4.4B |
| EBITDAEarnings before interest/tax | $324M | $1.0B |
| Net IncomeAfter-tax profit | $175M | $507M |
| Free Cash FlowCash after capex | -$502M | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +94.5% | +91.4% |
| Operating MarginEBIT ÷ Revenue | +55.3% | +34.6% |
| Net MarginNet income ÷ Revenue | +17.8% | +11.5% |
| FCF MarginFCF ÷ Revenue | -105.4% | -32.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -70.4% | +7.7% |
ONIT leads this category, winning 3 of 5 comparable metrics.
Valuation Metrics
ONIT leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 1.8x trailing earnings, ONIT trades at a 81% valuation discount to PFSI's 9.3x P/E. On an enterprise value basis, PFSI's 18.1x EV/EBITDA is more attractive than ONIT's 25.8x.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Market CapShares × price | $330M | $4.5B |
| Enterprise ValueMkt cap + debt − cash | $15.3B | $27.3B |
| Trailing P/EPrice ÷ TTM EPS | 1.80x | 9.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 3.88x | 7.04x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 25.76x | 18.05x |
| Price / SalesMarket cap ÷ Revenue | 0.31x | 1.04x |
| Price / BookPrice ÷ Book value/share | 0.53x | 1.09x |
| Price / FCFMarket cap ÷ FCF | — | — |
ONIT leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
PFSI leads this category, winning 5 of 8 comparable metrics.
Profitability & Efficiency
ONIT delivers a 29.9% return on equity — every $100 of shareholder capital generates $30 in annual profit, vs $12 for PFSI. PFSI carries lower financial leverage with a 5.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to ONIT's 24.17x.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| ROE (TTM)Return on equity | +29.9% | +12.0% |
| ROA (TTM)Return on assets | +1.1% | +1.8% |
| ROICReturn on invested capital | +2.9% | +4.4% |
| ROCEReturn on capital employed | +3.7% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 4 |
| Debt / EquityFinancial leverage | 24.17x | 5.35x |
| Net DebtTotal debt minus cash | $15.0B | $22.8B |
| Cash & Equiv.Liquid assets | $181M | $302M |
| Total DebtShort + long-term debt | $15.2B | $23.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.75x | 0.96x |
PFSI leads this category, winning 5 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
ONIT leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PFSI five years ago would be worth $15,907 today (with dividends reinvested), compared to $15,692 for ONIT. Over the past 12 months, ONIT leads with a +3.8% total return vs PFSI's -8.0%. The 3-year compound annual growth rate (CAGR) favors ONIT at 16.2% vs PFSI's 16.0% — a key indicator of consistent wealth creation.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| YTD ReturnYear-to-date | -12.3% | -33.7% |
| 1-Year ReturnPast 12 months | +3.8% | -8.0% |
| 3-Year ReturnCumulative with dividends | +56.9% | +56.3% |
| 5-Year ReturnCumulative with dividends | +56.9% | +59.1% |
| 10-Year ReturnCumulative with dividends | +56.9% | +624.6% |
| CAGR (3Y)Annualised 3-year return | +16.2% | +16.0% |
ONIT leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — ONIT and PFSI each lead in 1 of 2 comparable metrics.
Risk & Volatility
PFSI is the less volatile stock with a 0.93 beta — it tends to amplify market swings less than ONIT's 1.12 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ONIT currently trades 71.5% from its 52-week high vs PFSI's 54.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.12x | 0.93x |
| 52-Week HighHighest price in past year | $54.10 | $160.36 |
| 52-Week LowLowest price in past year | $35.47 | $82.67 |
| % of 52W HighCurrent price vs 52-week peak | +71.5% | +54.2% |
| RSI (14)Momentum oscillator 0–100 | 36.2 | 41.5 |
| Avg Volume (50D)Average daily shares traded | 67K | 609K |
Evenly matched — ONIT and PFSI each lead in 1 of 2 comparable metrics.
Analyst Outlook
PFSI leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates ONIT as "Buy" and PFSI as "Buy". Consensus price targets imply 64.5% upside for PFSI (target: $143) vs 55.1% for ONIT (target: $60). For income investors, PFSI offers the higher dividend yield at 1.34% vs ONIT's 1.26%.
| Metric | ONITOnity Group Inc. | PFSIPennyMac Financia… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $60.00 | $143.00 |
| # AnalystsCovering analysts | 3 | 20 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | +1.3% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | $0.49 | $1.16 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.1% |
PFSI leads this category, winning 2 of 2 comparable metrics.
Key Takeaway
ONIT leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). PFSI leads in 2 (Profitability & Efficiency, Analyst Outlook). 1 tied.
Best OverallOnity Group Inc. (ONIT)Leads 3 of 6 categories
Loading custom metrics...
ONIT vs PFSI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is ONIT or PFSI a better buy right now?
For growth investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger pick with 173. 8% revenue growth year-over-year, versus -0. 2% for Onity Group Inc. (ONIT). Onity Group Inc. (ONIT) offers the better valuation at 1. 8x trailing P/E (3. 9x forward), making it the more compelling value choice. Analysts rate Onity Group Inc. (ONIT) a "Buy" — based on 3 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — ONIT or PFSI?
On trailing P/E, Onity Group Inc.
(ONIT) is the cheapest at 1. 8x versus PennyMac Financial Services, Inc. at 9. 3x. On forward P/E, Onity Group Inc. is actually cheaper at 3. 9x.
03Which is the better long-term investment — ONIT or PFSI?
Over the past 5 years, PennyMac Financial Services, Inc.
(PFSI) delivered a total return of +59. 1%, compared to +56. 9% for Onity Group Inc. (ONIT). Over 10 years, the gap is even starker: PFSI returned +624. 6% versus ONIT's +56. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — ONIT or PFSI?
By beta (market sensitivity over 5 years), PennyMac Financial Services, Inc.
(PFSI) is the lower-risk stock at 0. 93β versus Onity Group Inc. 's 1. 12β — meaning ONIT is approximately 21% more volatile than PFSI relative to the S&P 500. On balance sheet safety, PennyMac Financial Services, Inc. (PFSI) carries a lower debt/equity ratio of 5% versus 24% for Onity Group Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — ONIT or PFSI?
By revenue growth (latest reported year), PennyMac Financial Services, Inc.
(PFSI) is pulling ahead at 173. 8% versus -0. 2% for Onity Group Inc. (ONIT). On earnings-per-share growth, the picture is similar: Onity Group Inc. grew EPS 419. 6% year-over-year, compared to 59. 2% for PennyMac Financial Services, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — ONIT or PFSI?
Onity Group Inc.
(ONIT) is the more profitable company, earning 17. 8% net margin versus 11. 5% for PennyMac Financial Services, Inc. — meaning it keeps 17. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ONIT leads at 55. 3% versus 34. 6% for PFSI. At the gross margin level — before operating expenses — ONIT leads at 94. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is ONIT or PFSI more undervalued right now?
On forward earnings alone, Onity Group Inc.
(ONIT) trades at 3. 9x forward P/E versus 7. 0x for PennyMac Financial Services, Inc. — 3. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 64. 5% to $143. 00.
08Which pays a better dividend — ONIT or PFSI?
All stocks in this comparison pay dividends.
PennyMac Financial Services, Inc. (PFSI) offers the highest yield at 1. 3%, versus 1. 3% for Onity Group Inc. (ONIT).
09Is ONIT or PFSI better for a retirement portfolio?
For long-horizon retirement investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 93), 1. 3% yield, +624. 6% 10Y return). Both have compounded well over 10 years (PFSI: +624. 6%, ONIT: +56. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between ONIT and PFSI?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: ONIT is a small-cap deep-value stock; PFSI is a small-cap high-growth stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(ONIT: -0.2% · PFSI: 173.8%)Net Margin>
%
(ONIT: 17.8% · PFSI: 11.5%)P/E Ratio<
x
(ONIT: 1.8x · PFSI: 9.3x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.