Head-To-Head Survey: Ocwen Financial (NYSE:OCN) vs. Atrium Mortgage Investment (OTCMKTS:AMIVF)

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Atrium Mortgage Investment and Ocwen Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atrium Mortgage Investment	0	0	0	0	N/A
Ocwen Financial	0	1	1	0	2.50

Ocwen Financial has a consensus target price of $39.00, suggesting a potential upside of 71.50%. Given Ocwen Financial’s higher probable upside, analysts plainly believe Ocwen Financial is more favorable than Atrium Mortgage Investment.

Valuation & Earnings

This table compares Atrium Mortgage Investment and Ocwen Financial’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atrium Mortgage Investment	N/A	N/A	N/A	$0.77	10.47
Ocwen Financial	$1.07 billion	0.17	-$63.70 million	($8.55)	-2.66

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

Profitability

This table compares Atrium Mortgage Investment and Ocwen Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atrium Mortgage Investment	N/A	N/A	N/A
Ocwen Financial	-5.97%	10.21%	0.34%

Institutional and Insider Ownership

70.2% of Ocwen Financial shares are held by institutional investors. 5.8% of Ocwen Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ocwen Financial beats Atrium Mortgage Investment on 7 of the 10 factors compared between the two stocks.

About Atrium Mortgage Investment

Atrium Mortgage Investment Corporation, a mortgage lender, provides residential and commercial mortgages services in Canada. It offers various types of mortgage loans, such as land and development financing, construction and mezzanine financing, and commercial term and bridge financing services for residential, multi-residential, and commercial real properties. Atrium Mortgage Investment Corporation was incorporated in 2001 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.