Head to Head Comparison: Home Capital Group (OTCMKTS:HMCBF) and Guild (NYSE:GHLD)

Guild (NYSE:GHLD) and Home Capital Group (OTCMKTS:HMCBF) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a summary of recent recommendations for Guild and Home Capital Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guild	1	1	2	0	2.25
Home Capital Group	0	0	0	0	N/A

Guild presently has a consensus target price of $15.25, indicating a potential upside of 12.55%. Given Guild’s higher possible upside, research analysts clearly believe Guild is more favorable than Home Capital Group.

Institutional and Insider Ownership

17.5% of Guild shares are held by institutional investors. Comparatively, 37.0% of Home Capital Group shares are held by institutional investors. 78.5% of Guild shares are held by 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.

Profitability

This table compares Guild and Home Capital Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guild	-5.95%	3.57%	1.27%
Home Capital Group	N/A	N/A	N/A

Valuation & Earnings

This table compares Guild and Home Capital Group’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guild	$655.19 million	1.26	-$39.01 million	($0.65)	-20.85
Home Capital Group	N/A	N/A	N/A	$4.06	8.00

Home Capital Group has lower revenue, but higher earnings than Guild. Guild is trading at a lower price-to-earnings ratio than Home Capital Group, indicating that it is currently the more affordable of the two stocks.

Summary

Guild beats Home Capital Group on 6 of the 10 factors compared between the two stocks.

About Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.

About Home Capital Group

Home Capital Group Inc., through its subsidiary, Home Trust Company, provides residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services in Canada. The company provides various lending and savings solutions. It offers deposits through brokers and financial planners under the Oaken Financial brand. The company also provides credit card and line of credit services, include Equityline Visa product, a home equity line of credit that is secured by residential property; and cash-secured and unsecured credit card products. In addition, it offers consumer retail lending services for durable household goods, such as water heaters and larger-ticket home improvement items; and consumer loans. Further, the company manages a treasury portfolio. The company was founded in 1986 and is based in Toronto, Canada. As of August 31, 2023, Home Capital Group Inc. operates as a subsidiary of 1000355080 Ontario Inc.