Comparing Ocwen Financial (NYSE:OCN) & Nuveen Churchill Direct Lending (NYSE:NCDL)

Nuveen Churchill Direct Lending (NYSE:NCDL) and Ocwen Financial (NYSE:OCN) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Profitability

This table compares Nuveen Churchill Direct Lending and Ocwen Financial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nuveen Churchill Direct Lending	46.95%	11.91%	4.89%
Ocwen Financial	0.63%	13.66%	0.45%

Earnings & Valuation

This table compares Nuveen Churchill Direct Lending and Ocwen Financial’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nuveen Churchill Direct Lending	$161.76 million	5.96	$75.94 million	N/A	N/A
Ocwen Financial	$1.07 billion	0.20	-$63.70 million	$0.53	51.79

Nuveen Churchill Direct Lending has higher earnings, but lower revenue than Ocwen Financial.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Nuveen Churchill Direct Lending and Ocwen Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nuveen Churchill Direct Lending	0	3	3	0	2.50
Ocwen Financial	0	1	1	0	2.50

Nuveen Churchill Direct Lending currently has a consensus target price of $18.50, suggesting a potential upside of 5.23%. Ocwen Financial has a consensus target price of $39.00, suggesting a potential upside of 42.08%. Given Ocwen Financial’s higher probable upside, analysts plainly believe Ocwen Financial is more favorable than Nuveen Churchill Direct Lending.

Institutional & Insider Ownership

70.2% of Ocwen Financial shares are held by institutional investors. 0.5% of Nuveen Churchill Direct Lending shares are held by company insiders. Comparatively, 7.6% of Ocwen Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

About Nuveen Churchill Direct Lending

Nuveen Churchill Direct Lending Corp. is a specialty finance company focused primarily on investing in senior secured loans to private equity-owned U.S. middle market companies. It has elected to be regulated as a business development company. Nuveen Churchill Direct Lending Corp. is based in NEW YORK.

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.