Rocket Companies (NYSE:RKT) and Acacia Research (NASDAQ:ACTG) Head-To-Head Contrast
by Danessa Lincoln · The Markets DailyRocket Companies (NYSE:RKT – Get Free Report) and Acacia Research (NASDAQ:ACTG – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Earnings and Valuation
This table compares Rocket Companies and Acacia Research”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rocket Companies | $6.70 billion | 5.58 | -$68.00 million | $0.14 | 94.21 |
| Acacia Research | $285.23 million | 1.56 | $21.68 million | ($0.15) | -30.47 |
Acacia Research has lower revenue, but higher earnings than Rocket Companies. Acacia Research is trading at a lower price-to-earnings ratio than Rocket Companies, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
4.6% of Rocket Companies shares are owned by institutional investors. Comparatively, 86.7% of Acacia Research shares are owned by institutional investors. 57.7% of Rocket Companies shares are owned by company insiders. Comparatively, 1.7% of Acacia Research shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Rocket Companies has a beta of 2.2, suggesting that its stock price is 120% more volatile than the S&P 500. Comparatively, Acacia Research has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Rocket Companies and Acacia Research, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rocket Companies | 0 | 9 | 9 | 0 | 2.50 |
| Acacia Research | 1 | 0 | 1 | 0 | 2.00 |
Rocket Companies presently has a consensus price target of $19.57, indicating a potential upside of 48.38%. Acacia Research has a consensus price target of $6.00, indicating a potential upside of 31.29%. Given Rocket Companies’ stronger consensus rating and higher probable upside, equities analysts plainly believe Rocket Companies is more favorable than Acacia Research.
Profitability
This table compares Rocket Companies and Acacia Research’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rocket Companies | 4.70% | 5.13% | 1.88% |
| Acacia Research | -5.39% | 0.44% | 0.33% |
Summary
Rocket Companies beats Acacia Research on 12 of the 14 factors compared between the two stocks.
About Rocket Companies
Rocket Companies, Inc., a fintech holding company, provides mortgage lending, title and settlement services, and other financial technology services in the United States and Canada. It operates through two segments, Direct to Consumer and Partner Network. The company’s solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; and Rocket Loans, an online-based personal loans business. It also offers Core Digital Media, a online marketing platform in the mortgage and personal financial product sectors; Rocket Money, a personal finance app that helps clients manage every aspect of their financial lives; Lendesk, a software services company that provides a point of sale system for mortgage professionals and a loan origination system for private lenders; Rock Connections, a sales and support platform specializing in contact center services; and Rocket Innovation Studio that recruits and mentors top technology talent. In addition, the company originates, closes, sells, and services agency-conforming loans. Rocket Companies, Inc. was founded in 1985 and is headquartered in Detroit, Michigan. The company operates as a subsidiary of Rock Holdings Inc.
About Acacia Research
Acacia is a publicly traded (Nasdaq: ACTG) company that is focused on acquiring and operating businesses across the industrial, energy and technology sectors where it believes it can leverage its expertise, significant capital base, and deep industry relationships to drive value. Acacia evaluates opportunities based on the attractiveness of the underlying cash flows, without regard to a specific investment horizon. Acacia operates its businesses based on three key principles of people, process, and performance and has built a management team with demonstrated expertise in research, transactions and execution, and operations and management.