loanDepot (NYSE:LDI – Get Free Report) and Equitable (NYSE:EQH – Get Free Report) are both finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
Dividends
loanDepot pays an annual dividend of $4.80 per share and has a dividend yield of 1,016.9%. Equitable pays an annual dividend of $1.20 per share and has a dividend yield of 2.1%. loanDepot pays out -1,333.3% of its earnings in the form of a dividend. Equitable pays out 23.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Equitable has raised its dividend for 2 consecutive years. loanDepot is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility and Risk
loanDepot has a beta of 3.56, indicating that its share price is 256% more volatile than the S&P 500. Comparatively, Equitable has a beta of 1.06, indicating that its share price is 6% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current ratings and price targets for loanDepot and Equitable, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| loanDepot | 3 | 2 | 0 | 0 | 1.40 |
| Equitable | 0 | 3 | 11 | 1 | 2.87 |
loanDepot presently has a consensus price target of $1.38, suggesting a potential upside of 191.31%. Equitable has a consensus price target of $63.33, suggesting a potential upside of 13.34%. Given loanDepot’s higher probable upside, research analysts clearly believe loanDepot is more favorable than Equitable.
Profitability
This table compares loanDepot and Equitable’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| loanDepot | -6.79% | -38.81% | -1.97% |
| Equitable | 11.53% | -3,089.96% | 0.64% |
Insider & Institutional Ownership
39.4% of loanDepot shares are held by institutional investors. Comparatively, 92.7% of Equitable shares are held by institutional investors. 65.9% of loanDepot shares are held by company insiders. Comparatively, 1.0% of Equitable shares are held 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.
Valuation and Earnings
This table compares loanDepot and Equitable”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| loanDepot | $938.56 million | 0.17 | -$62.65 million | ($0.36) | -1.31 |
| Equitable | $11.66 billion | 1.28 | -$1.38 billion | $5.21 | 10.73 |
loanDepot has higher earnings, but lower revenue than Equitable. loanDepot is trading at a lower price-to-earnings ratio than Equitable, indicating that it is currently the more affordable of the two stocks.
Summary
Equitable beats loanDepot on 11 of the 18 factors compared between the two stocks.
About loanDepot
loanDepot, Inc. is a U.S.-based mortgage lender that provides home loans to consumers. Its offerings include mortgages for home purchases and refinancing, delivered through its retail branches and digital channels. The company also works with mortgage brokers and other lending partners and provides mortgage servicing. Its technology platform supports the application and loan-management process. Founded in 2010 by mortgage entrepreneur Anthony Hsieh, loanDepot serves customers across the United States.
About Equitable
Equitable Holdings, Inc. is a financial services company focused on retirement, protection and wealth management. Through its Equitable business, it offers products and services including life insurance, annuities, employee benefits and retirement planning solutions to individuals, employers and institutions. The company also has a majority ownership interest in AllianceBernstein, an investment management and research firm that serves institutional and individual clients. AllianceBernstein operates internationally, while Equitable’s insurance and retirement businesses primarily serve customers in the United States.
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