WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Royal Bank of Canada generates 5814% more annual revenue ($65.72B vs $1.11B). RY leads profitability with a 33.7% profit margin vs 15.8%. ONIT appears more attractively valued with a PEG of 0.62. ONIT earns a higher WallStSmart Score of 79/100 (B+).

ONIT

Strong Buy

79

out of 100

Grade: B+

Growth: 4.7Profit: 8.0Value: 7.7Quality: 5.5
Piotroski: 4/9Altman Z: 1.13

RY

Strong Buy

70

out of 100

Grade: B-

Growth: 8.7Profit: 8.0Value: 4.3Quality: 5.0

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ONIT6 strengths · Avg: 9.2/10
P/E RatioValuation
1.9x10/10

Attractively priced relative to earnings

Price/BookValuation
0.5x10/10

Reasonable price relative to book value

Operating MarginProfitability
55.1%10/10

Strong operational efficiency at 55.1%

Return on EquityProfitability
29.4%9/10

Every $100 of equity generates 29 in profit

PEG RatioValuation
0.628/10

Growing faster than its price suggests

Revenue GrowthGrowth
17.8%8/10

17.8% revenue growth

RY6 strengths · Avg: 9.3/10
Market CapQuality
$277.29B10/10

Mega-cap, among the largest globally

Profit MarginProfitability
33.7%10/10

Keeps 34 of every $100 in revenue as profit

Operating MarginProfitability
45.3%10/10

Strong operational efficiency at 45.3%

Free Cash FlowQuality
$37.30B10/10

Generating 37.3B in free cash flow

Price/BookValuation
2.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

ONIT4 concerns · Avg: 2.3/10
Market CapQuality
$310.56M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-70.4%2/10

Earnings declined 70.4%

Free Cash FlowQuality
$-1.78B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
1.132/10

Distress zone — elevated risk

RY1 concerns · Avg: 2.0/10
PEG RatioValuation
2.532/10

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, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 55.1%. Revenue growth of 17.8% 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 33.7% and operating margin at 45.3%. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : ONIT

The primary concerns for ONIT are Market Cap, EPS Growth, Free Cash Flow. Debt-to-equity of 25.27 is elevated, increasing financial risk.

Bear Case : RY

The primary concerns for RY are PEG Ratio.

Key Dynamics to Monitor

ONIT carries more volatility with a beta of 1.46 — expect wider price swings.

ONIT is growing revenue faster at 17.8% — sustainability is the question.

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

Monitor MORTGAGE FINANCE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ONIT scores higher overall (79/100 vs 70/100), backed by strong 15.8% margins and 17.8% revenue growth. Both earn "Strong 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?