Head to Head Comparison: loanDepot (NYSE:LDI) and UWM (NYSE:UWMC)

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

Volatility & Risk

loanDepot has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500. Comparatively, UWM has a beta of 1.92, indicating that its share price is 92% more volatile than the S&P 500.

Earnings and Valuation

This table compares loanDepot and UWM”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
loanDepot	$888.06 million	0.90	-$98.33 million	($0.36)	-6.68
UWM	$1.37 billion	5.92	$14.40 million	N/A	N/A

UWM has higher revenue and earnings than loanDepot.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for loanDepot and UWM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	2	2	0	0	1.50
UWM	1	6	2	0	2.11

loanDepot presently has a consensus price target of $2.58, suggesting a potential upside of 7.42%. UWM has a consensus price target of $6.46, suggesting a potential upside of 27.88%. Given UWM’s stronger consensus rating and higher possible upside, analysts clearly believe UWM is more favorable than loanDepot.

Dividends

loanDepot pays an annual dividend of $4.80 per share and has a dividend yield of 199.6%. UWM pays an annual dividend of $0.40 per share and has a dividend yield of 7.9%. loanDepot pays out -1,333.3% of its earnings in the form of a dividend.

Insider and Institutional Ownership

39.4% of loanDepot shares are owned by institutional investors. Comparatively, 53.6% of UWM shares are owned by institutional investors. 78.1% of loanDepot shares are owned by insiders. Comparatively, 87.5% of UWM shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares loanDepot and UWM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
loanDepot	-6.46%	-22.40%	-1.64%
UWM	0.61%	-6.81%	-0.79%

Summary

UWM beats loanDepot on 11 of the 14 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 UWM

UWM Holdings Corporation engages in the residential mortgage lending business in the United States. The company offers mortgage loans through wholesale channel. It originates primarily conforming and government loans. UWM Holdings Corporation was founded in 1986 and is headquartered in Pontiac, Michigan.