Stonegate Mortgage (NYSE: SGM) and OneMain (NYSE:OMF) are both financials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Volatility and Risk

Stonegate Mortgage has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, OneMain has a beta of 2.72, suggesting that its stock price is 172% more volatile than the S&P 500.

Institutional and Insider Ownership

44.3% of Stonegate Mortgage shares are owned by institutional investors. Comparatively, 95.8% of OneMain shares are owned by institutional investors. 44.5% of Stonegate Mortgage shares are owned by company insiders. Comparatively, 57.7% of OneMain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Stonegate Mortgage and OneMain, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stonegate Mortgage 0 0 0 0 N/A
OneMain 0 5 8 0 2.62

OneMain has a consensus price target of $33.67, suggesting a potential downside of 2.50%. Given OneMain’s higher probable upside, analysts plainly believe OneMain is more favorable than Stonegate Mortgage.

Earnings & Valuation

This table compares Stonegate Mortgage and OneMain’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stonegate Mortgage N/A N/A N/A $1.16 6.89
OneMain $3.88 billion 1.20 $215.00 million $1.26 27.40

OneMain has higher revenue and earnings than Stonegate Mortgage. Stonegate Mortgage is trading at a lower price-to-earnings ratio than OneMain, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Stonegate Mortgage and OneMain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stonegate Mortgage -13.22% -6.70% -1.57%
OneMain 4.85% 14.15% 2.41%

Summary

OneMain beats Stonegate Mortgage on 11 of the 11 factors compared between the two stocks.

About Stonegate Mortgage

Stonegate Mortgage Corporation is a non-bank mortgage company. The Company is focused on originating, financing and servicing the United States residential mortgage loans. The Company’s segments include Originations, Servicing, Financing and Other. The Originations segment primarily originates and sells residential mortgage loans, which conform to the underwriting guidelines of the government sponsored enterprises and government agencies, and non-agency whole loan investors. The Servicing segment includes loan administration, collection and default activities, including the collection and remittance of loan payments, responding to customer inquiries, collection of principal and interest payments, holding custodial funds for the payment of property taxes and insurance premiums, counseling delinquent mortgagors and modifying loans. The Financing segment includes warehouse-lending activities to correspondent customers by the Company’s subsidiary, NattyMac, LLC.

About OneMain

OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

Receive News & Ratings for Stonegate Mortgage Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stonegate Mortgage and related companies with MarketBeat.com's FREE daily email newsletter.