Head to Head Review: CNFinance (NYSE:CNF) vs. Onity Group (NYSE:ONIT)

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

Institutional & Insider Ownership

70.2% of Onity Group shares are owned by institutional investors. 25.8% of CNFinance shares are owned by company insiders. Comparatively, 8.8% of Onity Group 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 ratings and recommmendations for CNFinance and Onity Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CNFinance	1	1	0	1	2.33
Onity Group	1	1	3	0	2.40

Onity Group has a consensus price target of $57.50, suggesting a potential upside of 25.82%. Given Onity Group’s stronger consensus rating and higher probable upside, analysts clearly believe Onity Group is more favorable than CNFinance.

Earnings and Valuation

This table compares CNFinance and Onity Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CNFinance	$205.99 million	0.20	$5.26 million	$3.10	1.95
Onity Group	$976.00 million	0.38	$33.90 million	$3.30	13.85

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CNFinance	N/A	N/A	N/A
Onity Group	3.41%	17.81%	0.51%

Summary

Onity Group beats CNFinance on 12 of the 14 factors compared between the two stocks.

About CNFinance

CNFinance Holdings Limited, through its subsidiaries, provides home equity loan services in the People's Republic of China. It offers micro credit loan services for micro and small-enterprise owners; and loan lending agency services for financial institutions. The company provides bridge loan products, which are unsecured short-term loans to pay off borrowers' existing loans secured by real property. It operates approximately 87 branches and sub-branches in China. The company was founded in 1999 and is headquartered in Guangzhou, the People's Republic of China.

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.