Ocwen Financial Corporation (NYSE: OCN) and Meta Financial Group (NASDAQ:CASH) are both small-cap finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
Valuation and Earnings
This table compares Ocwen Financial Corporation and Meta Financial Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Ocwen Financial Corporation||$1.32 billion||0.30||$352.81 million||($0.62)||-4.89|
|Meta Financial Group||$238.92 million||2.95||$49.55 million||$5.30||14.24|
Ocwen Financial Corporation has higher revenue and earnings than Meta Financial Group. Ocwen Financial Corporation is trading at a lower price-to-earnings ratio than Meta Financial Group, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and price targets for Ocwen Financial Corporation and Meta Financial Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Ocwen Financial Corporation||0||5||0||0||2.00|
|Meta Financial Group||0||1||1||0||2.50|
Ocwen Financial Corporation currently has a consensus target price of $3.33, indicating a potential upside of 10.01%. Meta Financial Group has a consensus target price of $108.00, indicating a potential upside of 43.14%. Given Meta Financial Group’s stronger consensus rating and higher possible upside, analysts clearly believe Meta Financial Group is more favorable than Ocwen Financial Corporation.
This table compares Ocwen Financial Corporation and Meta Financial Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Ocwen Financial Corporation||-5.95%||-12.41%||-1.01%|
|Meta Financial Group||18.74%||16.60%||1.58%|
Volatility & Risk
Ocwen Financial Corporation has a beta of 1.25, indicating that its share price is 25% more volatile than the S&P 500. Comparatively, Meta Financial Group has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.
Insider & Institutional Ownership
48.5% of Ocwen Financial Corporation shares are owned by institutional investors. Comparatively, 74.2% of Meta Financial Group shares are owned by institutional investors. 5.2% of Ocwen Financial Corporation shares are owned by company insiders. Comparatively, 6.1% of Meta Financial Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Meta Financial Group pays an annual dividend of $0.52 per share and has a dividend yield of 0.7%. Ocwen Financial Corporation does not pay a dividend. Meta Financial Group pays out 9.8% of its earnings in the form of a dividend.
Meta Financial Group beats Ocwen Financial Corporation on 11 of the 15 factors compared between the two stocks.
Ocwen Financial Corporation Company Profile
Ocwen Financial Corporation is a financial services holding company. The Company, through its subsidiaries, originates and services loans. The Company’s segments include Servicing, Lending, and Corporate Items and Other. The Company’s Servicing segment consists of its residential servicing business. The Company’s Lending segment is focused on originating and purchasing conventional and government-insured residential forward and reverse mortgage loans. The Company’s Corporate Items and Other segment includes revenues and expenses of Automotive Capital Services (ACS) and its other business activities. Its servicing clients include some of the financial institutions in the United States, including the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), the Government National Mortgage Association (Ginnie Mae) and non-Agency residential mortgage-backed securities (RMBS) trusts.
Meta Financial Group Company Profile
Meta Financial Group, Inc. is a unitary savings and loan holding company. The Company operates through its banking subsidiary, MetaBank (the Bank). Its segments include Payments, Banking, and Corporate Services/Other. MetaBank is both a community-oriented financial institution offering a range of financial services to meet the needs of the communities it serves and a payments company providing services on a nationwide basis. It operates in both the banking and payments industries through MetaBank, its retail banking operation; Meta Payment Systems (MPS), its electronic payments division; AFS/IBEX Financial Services Inc. (AFS/IBEX), its insurance premium financing division, and Refund Advantage, EPS Financial, LLC (EPS) Financial and Specialty Consumer Services, its tax-related financial solutions divisions.
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