Head to Head Comparison: Guild (NYSE:GHLD) vs. Home Capital Group (OTCMKTS:HMCBF)

Home Capital Group (OTCMKTS:HMCBF) and Guild (NYSE:GHLD) are both financial services companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Home Capital Group and Guild, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Home Capital Group	0	0	0	0	N/A
Guild	1	1	2	0	2.25

Guild has a consensus price target of $15.25, indicating a potential upside of 8.93%. Given Guild’s higher probable upside, analysts clearly believe Guild is more favorable than Home Capital Group.

Insider & Institutional Ownership

37.0% of Home Capital Group shares are held by institutional investors. Comparatively, 17.5% of Guild shares are held by institutional investors. 78.0% of Guild shares are held 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 Home Capital Group and Guild’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Home Capital Group	N/A	N/A	N/A	$4.06	8.00
Guild	$655.19 million	1.33	-$39.01 million	($0.65)	-22.00

Home Capital Group has higher earnings, but lower revenue than Guild. Guild is trading at a lower price-to-earnings ratio than Home Capital Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Home Capital Group and Guild’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Home Capital Group	N/A	N/A	N/A
Guild	-5.95%	3.57%	1.27%

Summary

Guild beats Home Capital Group on 6 of the 10 factors compared between the two stocks.

About Home Capital Group

Home Capital Group Inc., through its subsidiary, Home Trust Company, provides residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending, and credit card services in Canada. The company provides various lending and savings solutions. It offers deposits through brokers and financial planners under the Oaken Financial brand. The company also provides credit card and line of credit services, include Equityline Visa product, a home equity line of credit that is secured by residential property; and cash-secured and unsecured credit card products. In addition, it offers consumer retail lending services for durable household goods, such as water heaters and larger-ticket home improvement items; and consumer loans. Further, the company manages a treasury portfolio. The company was founded in 1986 and is based in Toronto, Canada. As of August 31, 2023, Home Capital Group Inc. operates as a subsidiary of 1000355080 Ontario Inc.

About Guild

Guild Holdings Company originates, sells, and services residential mortgage loans in the United States. It operates in two segments, Origination and Servicing. The company offers residential mortgages through retail and correspondent channels. Guild Holdings Company was incorporated in 1960 and is headquartered in San Diego, California.