Loomis (OTCMKTS:LOIMF) & Rocket Companies (NYSE:RKT) Critical Survey

Rocket Companies (NYSE:RKT) and Loomis (OTCMKTS:LOIMF) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, valuation, analyst recommendations, profitability and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rocket Companies	4.70%	5.13%	1.88%
Loomis	6.06%	15.08%	4.90%

Valuation and Earnings

This table compares Rocket Companies and Loomis”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rocket Companies	$6.70 billion	5.92	-$68.00 million	$0.14	99.99
Loomis	$3.11 billion	1.02	$161.68 million	$2.96	16.05

Loomis has lower revenue, but higher earnings than Rocket Companies. Loomis is trading at a lower price-to-earnings ratio than Rocket Companies, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Rocket Companies has a beta of 2.2, indicating that its stock price is 120% more volatile than the S&P 500. Comparatively, Loomis has a beta of -0.88, indicating that its stock price is 188% less volatile than the S&P 500.

Insider & Institutional Ownership

4.6% of Rocket Companies shares are owned by institutional investors. 57.7% of Rocket Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Rocket Companies and Loomis, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rocket Companies	0	9	10	0	2.53
Loomis	0	1	0	0	2.00

Rocket Companies currently has a consensus target price of $19.87, suggesting a potential upside of 41.93%. Given Rocket Companies’ stronger consensus rating and higher possible upside, equities analysts clearly believe Rocket Companies is more favorable than Loomis.

Summary

Rocket Companies beats Loomis on 9 of the 14 factors compared between the two stocks.

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.

About Loomis

Loomis AB (publ) provides solutions for the distribution, payments, handling, storage, and recycling of cash and other valuables. The company offers a range of solutions for cash in transit, cash management services, foreign exchange services, automated teller machines, automated solutions, and international valuables logistics, as well as operates Loomis Pay, a payment service that enables processing of various types of payment methods, such as card, cash, and digital alternatives. It serves financial institutions, banks, retailers, commercial enterprises, and other customers, as well as public sector in Sweden, the United States, France, Switzerland, Spain, the United Kingdom, and internationally. Loomis AB (publ) was founded in 1852 and is headquartered in Stockholm, Sweden.