Contrasting loanDepot (LDI) and Its Competitors

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

Risk & Volatility

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

Analyst Recommendations

This is a summary of current ratings and target prices for loanDepot and its competitors, 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 target price of $1.38, suggesting a potential upside of 131.09%. As a group, “Financial Services” companies have a potential downside of 1.51%. Given loanDepot’s higher possible upside, equities analysts clearly believe loanDepot is more favorable than its competitors.

Valuation and Earnings

This table compares loanDepot and its competitors top-line 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 competitors have higher revenue and earnings than loanDepot. loanDepot is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

39.4% of loanDepot shares are owned by institutional investors. Comparatively, 43.0% of shares of all “Financial Services” companies are owned by institutional investors. 65.9% of loanDepot shares are owned by insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares loanDepot and its competitors’ 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 competitors beat loanDepot on 8 of the 13 factors compared.

loanDepot Company Profile

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.