WallStSmart

Onity Group Inc. (ONIT)vsRoyal Bank of Canada (RY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 5846% more annual revenue ($63.42B vs $1.07B). RY leads profitability with a 33.1% profit margin vs 17.8%. ONIT appears more attractively valued with a PEG of 0.62. ONIT earns a higher WallStSmart Score of 81/100 (A-).

ONIT

Exceptional Buy

81

out of 100

Grade: A-

Growth: 4.7Profit: 8.0Value: 7.7Quality: 5.0

RY

Strong Buy

68

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 5.7Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ONIT6 strengths · Avg: 9.3/10
P/E RatioValuation
2.1x10/10

Attractively priced relative to earnings

Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Return on EquityProfitability
32.4%10/10

Every $100 of equity generates 32 in profit

Operating MarginProfitability
52.9%10/10

Strong operational efficiency at 52.9%

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Revenue GrowthGrowth
29.0%8/10

Revenue surging 29.0% year-over-year

RY6 strengths · Avg: 9.3/10
Market CapQuality
$250.25B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.1%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
46.2%10/10

Strong operational efficiency at 46.2%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

P/E RatioValuation
16.9x8/10

Attractively priced relative to earnings

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

ONIT3 concerns · Avg: 2.3/10
Market CapQuality
$390.89M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-23.4%2/10

Earnings declined 23.4%

Free Cash FlowQuality
$-471.00M2/10

Negative free cash flow — burning cash

RY1 concerns · Avg: 4.0/10
PEG RatioValuation
2.304/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : ONIT

The strongest argument for ONIT centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 17.8% and operating margin at 52.9%. Revenue growth of 29.0% demonstrates continued momentum.

Bull Case : RY

The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.1% and operating margin at 46.2%.

Bear Case : ONIT

The primary concerns for ONIT are Market Cap, EPS Growth, Free Cash Flow.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

ONIT profiles as a growth stock while RY is a mature play — different risk/reward profiles.

ONIT carries more volatility with a beta of 1.56 — expect wider price swings.

ONIT is growing revenue faster at 29.0% — sustainability is the question.

RY generates stronger free cash flow (37.3B), providing more financial flexibility.

Bottom Line

ONIT scores higher overall (81/100 vs 68/100), backed by strong 17.8% margins and 29.0% revenue growth. Both earn "Exceptional Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Onity Group Inc.

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

Onity Group Inc., a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. The company is headquartered in West Palm Beach, Florida.

Royal Bank of Canada

FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA

Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.

Want to dig deeper into these stocks?