First National Financial (OTCMKTS:FNLIF) versus Ocwen Financial (NYSE:OCN) Head to Head Review

First National Financial (OTCMKTS:FNLIF) and Ocwen Financial (NYSE:OCN) are both financial services companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

4.1% of First National Financial shares are owned by institutional investors. Comparatively, 70.2% of Ocwen Financial shares are owned by institutional investors. 5.8% of Ocwen Financial shares are owned by 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.

Earnings & Valuation

This table compares First National Financial and Ocwen Financial’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
First National Financial	N/A	N/A	N/A	$2.09	13.13
Ocwen Financial	$1.07 billion	0.17	-$63.70 million	($8.55)	-2.74

First National Financial has higher earnings, but lower revenue than Ocwen Financial. Ocwen Financial is trading at a lower price-to-earnings ratio than First National Financial, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for First National Financial and Ocwen Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
First National Financial	0	0	0	0	N/A
Ocwen Financial	0	1	1	0	2.50

First National Financial currently has a consensus target price of $48.67, indicating a potential upside of 76.97%. Ocwen Financial has a consensus target price of $39.00, indicating a potential upside of 66.31%. Given First National Financial’s higher probable upside, equities research analysts clearly believe First National Financial is more favorable than Ocwen Financial.

Profitability

This table compares First National Financial and Ocwen Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
First National Financial	N/A	N/A	N/A
Ocwen Financial	-5.97%	10.21%	0.34%

Summary

Ocwen Financial beats First National Financial on 6 of the 10 factors compared between the two stocks.

About First National Financial

First National Financial Corporation, together with its subsidiaries, originates, underwrites, and services commercial and residential mortgages in Canada. It operates in two segments, Residential and Commercial segments. The company offers single-family and multi-unit residential, and commercial mortgages. It provides its services through mortgage broker distribution channel, as well as online. The company was founded in 1988 and is headquartered in Toronto, Canada.

About Ocwen Financial

Ocwen Financial Corporation, a financial services company, originates and services mortgage loans in the United States, the United States Virgin Islands, India, and the Philippines. It operates through, Servicing and Originations segments. The company provides commercial forward mortgage loan servicing, reverse mortgage servicing, special servicing, and asset management services for to owners of mortgage loans and foreclosed real estate, as well as residential mortgage loan servicing, such as forward and reverse conventional, government-insured, and non-agency loans, including the reverse mortgage loans classified as loans. It also originates and purchases conventional and government-insured residential forward and reverse mortgage loans through its correspondent lending arrangements, broker relationships, and retail channels. It serves primarily under the PHH Mortgage and Liberty Reverse Mortgage brands. Ocwen Financial Corporation was founded in 1988 and is headquartered in West Palm Beach, Florida.