Rithm Capital (NYSE:RITM – Get Free Report) and Community West Bancshares (NASDAQ:CWBC – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.
Institutional and Insider Ownership
44.9% of Rithm Capital shares are held by institutional investors. Comparatively, 33.8% of Community West Bancshares shares are held by institutional investors. 0.6% of Rithm Capital shares are held by insiders. Comparatively, 9.0% of Community West Bancshares shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Rithm Capital and Community West Bancshares’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rithm Capital | 14.44% | 19.48% | 2.87% |
| Community West Bancshares | 20.77% | 10.44% | 1.15% |
Dividends
Earnings & Valuation
This table compares Rithm Capital and Community West Bancshares”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rithm Capital | $4.59 billion | 1.13 | $681.45 million | $1.09 | 8.55 |
| Community West Bancshares | $196.20 million | 3.32 | $38.17 million | $2.16 | 11.12 |
Rithm Capital has higher revenue and earnings than Community West Bancshares. Rithm Capital is trading at a lower price-to-earnings ratio than Community West Bancshares, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Rithm Capital has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, Community West Bancshares has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations for Rithm Capital and Community West Bancshares, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rithm Capital | 1 | 0 | 9 | 0 | 2.80 |
| Community West Bancshares | 0 | 2 | 3 | 0 | 2.60 |
Rithm Capital currently has a consensus target price of $13.61, suggesting a potential upside of 46.12%. Community West Bancshares has a consensus target price of $28.17, suggesting a potential upside of 17.31%. Given Rithm Capital’s stronger consensus rating and higher possible upside, research analysts clearly believe Rithm Capital is more favorable than Community West Bancshares.
Summary
Rithm Capital beats Community West Bancshares on 10 of the 16 factors compared between the two stocks.
About Rithm Capital
Rithm Capital Corp. operates as an asset manager focused on real estate, credit, and financial services. It operates through Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights (MSR), and MSR financing receivables, title, appraisal and property preservation, excess MSRs, and services advance investments; real estate securities, call rights, SFR properties, and residential mortgage loans; consumer and business purpose loans; and asset management related investments. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was formerly known as New Residential Investment Corp. and changed its name to Rithm Capital Corp. in August 2022. Rithm Capital Corp. was incorporated in 2011 and is based in New York, New York.
About Community West Bancshares
Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposits; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.
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