Reviewing Rocket Companies (RKT) & The Competition

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

Risk & Volatility

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

Analyst Recommendations

This is a summary of current ratings and target prices for Rocket Companies and its peers, 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 currently has a consensus price target of $14.21, suggesting a potential downside of 1.30%. As a group, “FIN – MTG&REL SVS” companies have a potential upside of 26.25%. Given Rocket Companies’ peers stronger consensus rating and higher probable upside, analysts clearly believe Rocket Companies has less favorable growth aspects than its peers.

Earnings and Valuation

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

Institutional and Insider Ownership

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

Profitability

This table compares Rocket Companies and its peers’ 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%

Summary

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

Rocket Companies Company Profile

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.