loanDepot vs LendingTree Which Offers More Value?

loanDepot and LendingTree are two prominent players in the financial industry, both offering services related to loans and mortgages. While loanDepot is a direct lender offering a variety of loan products, LendingTree operates as an online loan marketplace connecting borrowers with multiple lenders. Investors interested in the housing market may find these stocks appealing due to the consistent demand for loans. However, differences in business models and market positioning may influence their performance and potential for growth.

loanDepot or LendingTree?

When comparing loanDepot and LendingTree, 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 LendingTree.

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 LendingTree has a dividend yield of -%. 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, LendingTree reports a 5-year dividend growth of 0.00% year and a payout ratio of -4.64%.

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 LendingTree's P/E ratio at -14.95. 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 LendingTree's P/B ratio is 5.79.

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 LendingTree's is -0.04%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with loanDepot's ROE at -23.63% and LendingTree's ROE at -29.44%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $2.08 for loanDepot and $40.58 for LendingTree. Over the past year, loanDepot's prices ranged from $1.52 to $3.71, with a yearly change of 144.08%. LendingTree's prices fluctuated between $24.55 and $62.49, with a yearly change of 154.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.