Analyzing loanDepot (LDI) & Its Peers

loanDepot (NYSE:LDI) is one of 341 publicly-traded companies in the “Financial Services” industry, but how does it compare to its competitors? We will compare loanDepot to related companies based on the strength of its valuation, institutional ownership, earnings, risk, dividends, profitability and analyst recommendations.

Volatility & Risk

loanDepot has a beta of 3.56, suggesting that its stock price is 256% more volatile than the S&P 500. Comparatively, loanDepot’s competitors have a beta of 2.51, suggesting that their average stock price is 151% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for loanDepot and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	2	2	0	0	1.50
loanDepot Competitors	1984	6937	11707	444	2.50

loanDepot currently has a consensus price target of $1.38, indicating a potential upside of 120.35%. As a group, “Financial Services” companies have a potential downside of 6.29%. Given loanDepot’s higher possible upside, research analysts clearly believe loanDepot is more favorable than its competitors.

Dividends

loanDepot pays an annual dividend of $4.80 per share and has a dividend yield of 769.2%. loanDepot pays out -1,600.0% of its earnings in the form of a dividend. As a group, “Financial Services” companies pay a dividend yield of 4.3% and pay out -72.9% of their earnings in the form of a dividend. loanDepot is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

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	-412.58%	-39.71%	-5.80%

Earnings & Valuation

This table compares loanDepot and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
loanDepot	$956.18 million	-$62.65 million	-2.08
loanDepot Competitors	$24.43 billion	$1.09 billion	7.50

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.

Insider & Institutional 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 company insiders. Comparatively, 21.9% of shares of all “Financial Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

loanDepot beats its competitors on 8 of the 15 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.