Critical Survey: Farmhouse (OTCMKTS:FMHS) & Onity Group (NYSE:ONIT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Farmhouse	N/A	N/A	N/A
Onity Group	0.16%	15.54%	0.52%

Volatility and Risk

Farmhouse has a beta of -1.07, suggesting that its share price is 207% less volatile than the S&P 500. Comparatively, Onity Group has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500.

Institutional and Insider Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Farmhouse	N/A	N/A	N/A	N/A	N/A
Onity Group	$1.10 billion	0.22	-$63.70 million	$0.53	58.23

Farmhouse has higher earnings, but lower revenue than Onity Group.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Farmhouse and Onity Group, as provided by MarketBeat.

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

Onity Group has a consensus target price of $35.00, suggesting a potential upside of 13.42%. Given Onity Group’s higher possible upside, analysts plainly believe Onity Group is more favorable than Farmhouse.

Summary

Onity Group beats Farmhouse on 9 of the 10 factors compared between the two stocks.

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.

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.