Reviewing Rocket Companies (RKT) and Its Rivals

Rocket Companies (NYSE:RKT) is one of 19 publicly-traded companies in the “FIN – MTG&REL SVS” industry, but how does it compare to its rivals? We will compare Rocket Companies to related companies based on the strength of its dividends, profitability, risk, valuation, institutional ownership, earnings and analyst recommendations.

Insider and Institutional Ownership

4.6% of Rocket Companies shares are owned by institutional investors. Comparatively, 52.2% of shares of all “FIN – MTG&REL SVS” companies are owned by institutional investors. 92.6% of Rocket Companies shares are owned by insiders. Comparatively, 29.5% of shares of all “FIN – MTG&REL SVS” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Rocket Companies and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Rocket Companies	$5.10 billion	$29.37 million	-479.83
Rocket Companies Competitors	$18.36 billion	$1.82 billion	-69.90

Rocket Companies’ rivals have higher revenue and earnings than Rocket Companies. Rocket Companies is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Rocket Companies and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rocket Companies	0.06%	3.61%	1.27%
Rocket Companies Competitors	-4.16%	-79.30%	-0.70%

Risk and Volatility

Rocket Companies has a beta of 2.28, suggesting that its stock price is 128% more volatile than the S&P 500. Comparatively, Rocket Companies’ rivals have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Rocket Companies and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocket Companies	2	9	1	0	1.92
Rocket Companies Competitors	152	677	983	15	2.47

Rocket Companies presently has a consensus price target of $14.21, indicating a potential downside of 1.30%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 26.25%. Given Rocket Companies’ rivals stronger consensus rating and higher probable upside, analysts plainly believe Rocket Companies has less favorable growth aspects than its rivals.

Summary

Rocket Companies rivals beat Rocket Companies on 8 of the 13 factors compared.

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.