LendingTree (NASDAQ: TREE) is one of 27 publicly-traded companies in the “Consumer Lending” industry, but how does it contrast to its rivals? We will compare LendingTree to related companies based on the strength of its earnings, profitability, dividends, analyst recommendations, institutional ownership, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
LendingTree 5.85% 17.01% 10.47%
LendingTree Competitors -28.27% -17.29% 0.62%

Earnings and Valuation

This table compares LendingTree and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
LendingTree $480.69 million $73.26 million 112.27
LendingTree Competitors $564.84 million $92.07 million 16.54

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

Volatility & Risk

LendingTree has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500. Comparatively, LendingTree’s rivals have a beta of 1.48, indicating that their average stock price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

71.7% of LendingTree shares are held by institutional investors. Comparatively, 77.5% of shares of all “Consumer Lending” companies are held by institutional investors. 21.9% of LendingTree shares are held by company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for LendingTree and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingTree 0 0 12 0 3.00
LendingTree Competitors 194 749 1072 58 2.48

LendingTree currently has a consensus price target of $188.91, indicating a potential downside of 21.37%. As a group, “Consumer Lending” companies have a potential upside of 57.97%. Given LendingTree’s rivals higher possible upside, analysts clearly believe LendingTree has less favorable growth aspects than its rivals.

Summary

LendingTree beats its rivals on 8 of the 13 factors compared.

LendingTree Company Profile

LendingTree, Inc. (LendingTree) is engaged in operating an online loan marketplace for consumers seeking loans and other credit-based offerings. The Company’s online marketplace provides consumers with access to product offerings from various lenders, which it refers to as Network Lenders, including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, personal loans, student loans, small business loans and other related offerings. In addition, the Company offers tools and resources, including free credit scores that facilitate comparison shopping for these loans and other credit-based offerings. The Company offers its products in categories, including mortgage products and non-mortgage products. Its mortgage products category includes its purchase and refinance products. Its non-mortgage products include lending products and other products.

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