Rocket Companies Inc (RKT)vsVelocity Financial Llc (VEL)
RKT
Rocket Companies Inc
$12.65
-4.38%
FINANCIAL SERVICES · Cap: $36.98B
VEL
Velocity Financial Llc
$17.48
+0.17%
FINANCIAL SERVICES · Cap: $679.90M
Smart Verdict
WallStSmart Research — data-driven comparison
Rocket Companies Inc generates 3181% more annual revenue ($8.91B vs $271.59M). VEL leads profitability with a 40.0% profit margin vs 2.7%. VEL earns a higher WallStSmart Score of 74/100 (B).
RKT
Buy60
out of 100
Grade: C+
VEL
Strong Buy74
out of 100
Grade: B
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Growing faster than its price suggests
Revenue surging 167.1% year-over-year
Reasonable price relative to book value
Strong operational efficiency at 28.1%
Generating 1.8B in free cash flow
Attractively priced relative to earnings
Reasonable price relative to book value
Keeps 40 of every $100 in revenue as profit
Strong operational efficiency at 38.2%
Revenue surging 132.1% year-over-year
Areas to Watch
ROE of 1.0% — below average capital efficiency
2.7% margin — thin
Elevated debt levels
Weak financial health signals
Smaller company, higher risk/reward
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : RKT
The strongest argument for RKT centers on PEG Ratio, Revenue Growth, Price/Book. Revenue growth of 167.1% demonstrates continued momentum. PEG of 0.44 suggests the stock is reasonably priced for its growth.
Bull Case : VEL
The strongest argument for VEL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 40.0% and operating margin at 38.2%. Revenue growth of 132.1% demonstrates continued momentum.
Bear Case : RKT
The primary concerns for RKT are Return on Equity, Profit Margin, Debt/Equity. Thin 2.7% margins leave little buffer for downturns.
Bear Case : VEL
The primary concerns for VEL are Market Cap, Altman Z-Score, Debt/Equity. Debt-to-equity of 9.65 is elevated, increasing financial risk.
Key Dynamics to Monitor
RKT profiles as a hypergrowth stock while VEL is a growth play — different risk/reward profiles.
RKT carries more volatility with a beta of 2.20 — expect wider price swings.
RKT is growing revenue faster at 167.1% — sustainability is the question.
RKT generates stronger free cash flow (1.8B), providing more financial flexibility.
Bottom Line
VEL scores higher overall (74/100 vs 60/100), backed by strong 40.0% margins and 132.1% revenue growth. Both earn "Strong Buy" and "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.
Rocket Companies Inc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
Rocket Companies, Inc. is engaged in the technology-driven real estate, mortgage and e-commerce businesses in the United States and Canada. The company is headquartered in Detroit, Michigan.
Visit Website →Velocity Financial Llc
FINANCIAL SERVICES · MORTGAGE FINANCE · USA
Velocity Financial, Inc. is a real estate finance company in the United States. The company is headquartered in Westlake Village, California.
Visit Website →Compare with Other MORTGAGE FINANCE Stocks
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