Head-To-Head Contrast: Farmhouse (OTCMKTS:FMHS) vs. Rocket Companies (NYSE:RKT)

Rocket Companies (NYSE:RKT) and Farmhouse (OTCMKTS:FMHS) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rocket Companies and Farmhouse, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rocket Companies 2 12 4 0 2.11
Farmhouse 0 0 0 0 N/A

Rocket Companies currently has a consensus price target of $23.38, suggesting a potential upside of 13.47%. Given Rocket Companies’ higher probable upside, research analysts plainly believe Rocket Companies is more favorable than Farmhouse.

Institutional and Insider Ownership

3.7% of Rocket Companies shares are held by institutional investors. 93.2% of Rocket Companies shares are held by company insiders. Comparatively, 72.4% of Farmhouse shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Rocket Companies and Farmhouse’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rocket Companies $15.74 billion 2.60 $197.95 million $3.19 6.46
Farmhouse N/A N/A N/A N/A N/A

Rocket Companies has higher revenue and earnings than Farmhouse.

Profitability

This table compares Rocket Companies and Farmhouse’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rocket Companies 19.96% 139.59% 28.23%
Farmhouse N/A N/A N/A

Summary

Rocket Companies beats Farmhouse on 8 of the 8 factors compared between the two stocks.

Rocket Companies Company Profile

Rocket Companies, Inc. engages in the tech-driven real estate, mortgage, and eCommerce businesses in the United States and Canada. It operates in 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; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to national car rental and online car purchasing platforms; and Rocket Loans, an online-based personal loans business. Its solutions also include Core Digital Media, a digital social and display advertiser in the mortgage, insurance, and education sectors; Nexsys, a fintech company, which offers a suite of essential tech solutions for mortgage origination and closing processes through digitization and automation; Lendesk, a technology services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; and Edison Financial, a digital mortgage startup. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in in 1985 and is headquartered in Detroit, Michigan. Rocket Companies, Inc. is a subsidiary of Rock Holdings, Inc.

Farmhouse Company Profile

Farmhouse, Inc. operates a platform for regulated cannabis industry. The company provides The WeedClub, a social network platform that allows its members to digitally network with vetted cannabis industry stakeholders. Its platform serves cannabis producers, retailers, consultants, and supply chain professionals. The company was founded in 2014 and is based in San Francisco, California.

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