Rocket Companies (NYSE:RKT – Get Free Report) and Freddie Mac (OTCMKTS:FMCC – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, analyst recommendations, risk, dividends and valuation.
Profitability
This table compares Rocket Companies and Freddie Mac’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocket Companies | -0.01% | 3.18% | 1.01% |
| Freddie Mac | 9.04% | -44.33% | 0.34% |
Earnings and Valuation
This table compares Rocket Companies and Freddie Mac”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocket Companies | $5.10 billion | 7.47 | $29.37 million | ($0.05) | -361.92 |
| Freddie Mac | $122.05 billion | 0.05 | $11.86 billion | ($0.03) | -312.00 |
Freddie Mac has higher revenue and earnings than Rocket Companies. Rocket Companies is trading at a lower price-to-earnings ratio than Freddie Mac, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Rocket Companies has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500. Comparatively, Freddie Mac has a beta of 2.06, suggesting that its stock price is 106% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Rocket Companies and Freddie Mac, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocket Companies | 2 | 9 | 1 | 1 | 2.08 |
| Freddie Mac | 1 | 0 | 0 | 0 | 1.00 |
Rocket Companies presently has a consensus price target of $15.81, suggesting a potential downside of 12.65%. Freddie Mac has a consensus price target of $4.50, suggesting a potential downside of 51.92%. Given Rocket Companies’ stronger consensus rating and higher possible upside, research analysts plainly believe Rocket Companies is more favorable than Freddie Mac.
Insider and Institutional Ownership
4.6% of Rocket Companies shares are owned by institutional investors. 92.6% of Rocket Companies shares are owned by company insiders. Comparatively, 0.1% of Freddie Mac shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
Rocket Companies beats Freddie Mac on 10 of the 15 factors compared between the two stocks.
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.
About Freddie Mac
Federal Home Loan Mortgage Corporation operates in the secondary mortgage market in the United States. It operates through two segments, Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans; and manages single-family mortgage credit and market risk, as well as manages mortgage-related investments portfolio, single-family securitization activities, and treasury functions. This segment serves mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment engages in the purchase, securitization, and guarantee of multifamily loans; issuance of multifamily K certificates; manages multifamily mortgage credit and market risk; and invests in multifamily loans and mortgage-related securities. It serves banks and other financial institutions, insurance companies, money managers, hedge funds, pension funds, state and local governments, and broker dealers. Federal Home Loan Mortgage Corporation incorporated in 1970 and is headquartered in McLean, Virginia.
Receive News & Ratings for Rocket Companies Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rocket Companies and related companies with MarketBeat.com's FREE daily email newsletter.
