loanDepot (LDI) & Its Competitors Critical Comparison

loanDepot (NYSE:LDI) is one of 342 publicly-traded companies in the “Financial Services” industry, but how does it contrast to its rivals? We will compare loanDepot to related businesses based on the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, earnings and profitability.

Risk and Volatility

loanDepot has a beta of 3.45, suggesting that its stock price is 245% more volatile than the S&P 500. Comparatively, loanDepot’s rivals have a beta of 2.49, suggesting that their average stock price is 149% more volatile than the S&P 500.

Valuation & Earnings

This table compares loanDepot and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
loanDepot	$1.19 billion	-$62.65 million	-1.98
loanDepot Competitors	$6.42 billion	$1.07 billion	8.42

loanDepot’s rivals have higher revenue and earnings than loanDepot. loanDepot is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for loanDepot and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	2	2	0	0	1.50
loanDepot Competitors	1966	6864	11608	443	2.50

loanDepot presently has a consensus price target of $1.38, indicating a potential upside of 131.09%. As a group, “Financial Services” companies have a potential downside of 1.51%. Given loanDepot’s higher probable upside, analysts plainly believe loanDepot is more favorable than its rivals.

Institutional and Insider Ownership

39.4% of loanDepot shares are held by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are held by institutional investors. 65.9% of loanDepot shares are held by company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares loanDepot and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
loanDepot	-5.52%	-28.25%	-1.56%
loanDepot Competitors	-409.62%	-16.12%	-6.09%

Summary

loanDepot rivals beat loanDepot on 8 of the 13 factors compared.

About loanDepot

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. The company offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. It also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Irvine, California.