Financial Review: Rocket Companies (NYSE:RKT) & Voya Financial (NYSE:VOYA)

Voya Financial (NYSE:VOYA) and Rocket Companies (NYSE:RKT) are both 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Voya Financial and Rocket Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Voya Financial	1	3	8	1	2.69
Rocket Companies	0	9	9	0	2.50

Voya Financial presently has a consensus price target of $103.85, suggesting a potential upside of 6.17%. Rocket Companies has a consensus price target of $19.57, suggesting a potential upside of 53.42%. Given Rocket Companies’ higher probable upside, analysts plainly believe Rocket Companies is more favorable than Voya Financial.

Volatility and Risk

Voya Financial has a beta of 0.9, suggesting that its stock price is 10% less volatile than the S&P 500. Comparatively, Rocket Companies has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500.

Institutional and Insider Ownership

96.1% of Voya Financial shares are held by institutional investors. Comparatively, 4.6% of Rocket Companies shares are held by institutional investors. 1.6% of Voya Financial shares are held by insiders. Comparatively, 57.7% of Rocket Companies 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.

Profitability

This table compares Voya Financial and Rocket Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Voya Financial	7.45%	12.31%	0.46%
Rocket Companies	4.70%	5.13%	1.88%

Valuation & Earnings

This table compares Voya Financial and Rocket Companies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Voya Financial	$8.19 billion	1.08	$654.00 million	$5.93	16.49
Rocket Companies	$6.70 billion	5.40	-$68.00 million	$0.14	91.12

Voya Financial has higher revenue and earnings than Rocket Companies. Voya Financial is trading at a lower price-to-earnings ratio than Rocket Companies, indicating that it is currently the more affordable of the two stocks.

Summary

Voya Financial beats Rocket Companies on 8 of the 15 factors compared between the two stocks.

About Voya Financial

Voya Financial, Inc. engages in the provision of workplace benefits and savings products in the United States and internationally. The company operates through three segments: Wealth Solutions, Health Solutions, and Investment Management. The Wealth Solutions segment offers full-service retirement products; recordkeeping services; stable value and fixed general account investment products; non-qualified plan administration services; and tools, guidance, and services to promote the financial well-being and retirement security of employees. The segment also provides wealth management services, such as individual retirement, managed, and brokerage accounts, as well as financial guidance and advisory services. This segment serves corporate, public and private school systems, higher education institutions, hospitals and healthcare facilities, other non-profit organizations, and state and local governments, as well as institutional and individual customers. The Health Solutions segment offers various insurance products comprising stop loss, group life, group disability, whole life, critical illness, accident, and hospital indemnity insurance. The segment also provides worksite employee benefits, health account solutions, leave management, benefits administration, health plan enrollment, financial wellness, and decision support products and services to mid-size and large corporate employers and professional associations. The Investment Management segment provides fixed income, equity, multi-asset, and alternative products and solutions to individual investors and institutional clients through its direct sales force, consultant channel, banks, broker-dealers, and independent financial advisers. The company was formerly known as ING U.S., Inc. and changed its name to Voya Financial, Inc. in April 2014. Voya Financial, Inc. was founded in 1975 and is based in New York, New York.

About Rocket Companies

Rocket Companies, Inc., a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business. It also offers Core Digital Media, a online marketing platform in the mortgage and personal financial product sectors; Rocket Money, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a software services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; Rock Connections, a sales and support platform specializing in contact center services; and Rocket Innovation Studio that recruits and mentors top technology talent. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. The company operates as a subsidiary of Rock Holdings Inc.