Financial Comparison: Atrium Mortgage Investment (OTCMKTS:AMIVF) and Ocwen Financial (NYSE:OCN)

Ocwen Financial (NYSE:OCN) and Atrium Mortgage Investment (OTCMKTS:AMIVF) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Earnings and Valuation

This table compares Ocwen Financial and Atrium Mortgage Investment’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ocwen Financial	$1.07 billion	0.17	-$63.70 million	($8.55)	-2.74
Atrium Mortgage Investment	N/A	N/A	N/A	$0.77	10.47

Atrium Mortgage Investment has lower revenue, but higher earnings than Ocwen Financial. Ocwen Financial is trading at a lower price-to-earnings ratio than Atrium Mortgage Investment, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

70.2% of Ocwen Financial shares are owned by institutional investors. 5.8% of Ocwen Financial shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings for Ocwen Financial and Atrium Mortgage Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ocwen Financial	0	1	1	0	2.50
Atrium Mortgage Investment	0	0	0	0	N/A

Ocwen Financial currently has a consensus target price of $39.00, indicating a potential upside of 66.31%. Given Ocwen Financial’s higher possible upside, equities analysts plainly believe Ocwen Financial is more favorable than Atrium Mortgage Investment.

Profitability

This table compares Ocwen Financial and Atrium Mortgage Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ocwen Financial	-5.97%	10.21%	0.34%
Atrium Mortgage Investment	N/A	N/A	N/A

Summary

Ocwen Financial beats Atrium Mortgage Investment on 7 of the 10 factors compared between the two stocks.

About Ocwen Financial

Ocwen Financial Corporation, 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. Ocwen Financial Corporation was founded in 1988 and is headquartered in West Palm Beach, Florida.

About Atrium Mortgage Investment

Atrium Mortgage Investment Corporation, a mortgage lender, provides residential and commercial mortgages services in Canada. It offers various types of mortgage loans, such as land and development financing, construction and mezzanine financing, and commercial term and bridge financing services for residential, multi-residential, and commercial real properties. Atrium Mortgage Investment Corporation was incorporated in 2001 and is headquartered in Toronto, Canada.