Financial Review: Brookfield Wealth Solutions (NYSE:BNT) vs. loanDepot (NYSE:LDI)

loanDepot (NYSE:LDI) and Brookfield Wealth Solutions (NYSE:BNT) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.

Dividends

loanDepot pays an annual dividend of $4.80 per share and has a dividend yield of 579.0%. Brookfield Wealth Solutions pays an annual dividend of $0.28 per share and has a dividend yield of 0.7%. loanDepot pays out -1,600.0% of its earnings in the form of a dividend. Brookfield Wealth Solutions pays out 107.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. loanDepot is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and target prices for loanDepot and Brookfield Wealth Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	3	2	0	0	1.40
Brookfield Wealth Solutions	0	1	0	0	2.00

loanDepot currently has a consensus target price of $1.92, suggesting a potential upside of 131.20%. Given loanDepot’s higher probable upside, analysts plainly believe loanDepot is more favorable than Brookfield Wealth Solutions.

Valuation & Earnings

This table compares loanDepot and Brookfield Wealth Solutions”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
loanDepot	$956.18 million	0.29	-$62.65 million	($0.30)	-2.76
Brookfield Wealth Solutions	$11.63 billion	1.14	$766.00 million	$0.26	151.27

Brookfield Wealth Solutions has higher revenue and earnings than loanDepot. loanDepot is trading at a lower price-to-earnings ratio than Brookfield Wealth Solutions, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

39.4% of loanDepot shares are owned by institutional investors. Comparatively, 20.3% of Brookfield Wealth Solutions shares are owned by institutional investors. 65.9% of loanDepot shares are owned by insiders. Comparatively, 1.0% of Brookfield Wealth Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

loanDepot has a beta of 3.4, meaning that its share price is 240% more volatile than the S&P 500. Comparatively, Brookfield Wealth Solutions has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500.

Profitability

This table compares loanDepot and Brookfield Wealth Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
loanDepot	-5.52%	-28.25%	-1.56%
Brookfield Wealth Solutions	0.15%	0.10%	0.01%

Summary

Brookfield Wealth Solutions beats loanDepot on 9 of the 15 factors compared between the two stocks.

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.

About Brookfield Wealth Solutions

Brookfield Wealth Solutions is focused on securing the financial futures of individuals and institutions through a range of retirement services, wealth protection products and tailored capital solutions. Through our operating subsidiaries, we offer a broad range of insurance products and services, including annuities, personal and commercial property and casualty insurance and life insurance.The company was incorporated in 2020 and is headquartered in Pembroke, Bermuda.