loanDepot vs Home Depot Which Performs Better?

loanDepot and Home Depot are two distinct companies in the financial and home improvement industries. loanDepot, a leading mortgage lender, provides loans for purchasing or refinancing homes, while Home Depot is a retailer specializing in home improvement products and services. Both companies have garnered investor interest in recent years, with loanDepot's stock showing growth potential in the financial sector, while Home Depot's stock has remained stable and resilient in the competitive retail market. This comparison highlights the different opportunities and risks associated with investing in these companies.

loanDepot or Home Depot?

When comparing loanDepot and Home Depot, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between loanDepot and Home Depot.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. loanDepot has a dividend yield of -%, while Home Depot has a dividend yield of 2.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. loanDepot reports a 5-year dividend growth of 0.00% year and a payout ratio of -3.83%. On the other hand, Home Depot reports a 5-year dividend growth of 15.20% year and a payout ratio of 60.05%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with loanDepot P/E ratio at -4.22 and Home Depot's P/E ratio at 28.11. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. loanDepot P/B ratio is 0.66 while Home Depot's P/B ratio is 70.98.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, loanDepot has seen a 5-year revenue growth of -0.37%, while Home Depot's is 0.61%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with loanDepot's ROE at -23.63% and Home Depot's ROE at 447.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.08 for loanDepot and $413.18 for Home Depot. Over the past year, loanDepot's prices ranged from $1.52 to $3.71, with a yearly change of 144.08%. Home Depot's prices fluctuated between $323.77 and $439.37, with a yearly change of 35.70%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.