Equitable (NYSE:EQH) vs. loanDepot (NYSE:LDI) Critical Survey

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

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.

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 insiders. Comparatively, 1.0% of Equitable shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

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	-5.52%	-28.25%	-1.56%
Equitable	11.53%	-3,089.96%	0.64%

Analyst Recommendations

This is a summary of current ratings and recommmendations for loanDepot and Equitable, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	2	2	0	0	1.50
Equitable	0	3	11	1	2.87

loanDepot presently has a consensus target price of $1.38, indicating a potential upside of 120.00%. Equitable has a consensus target price of $63.33, indicating a potential upside of 20.17%. Given loanDepot’s higher possible upside, research analysts plainly believe loanDepot is more favorable than Equitable.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
loanDepot	$1.19 billion	0.18	-$62.65 million	($0.30)	-2.08
Equitable	$11.66 billion	1.23	-$1.38 billion	$5.21	10.12

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 10 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 Equitable

Equitable Holdings, Inc., together with its consolidated subsidiaries, operates as a diversified financial services company worldwide. The company operates through six segments: Individual Retirement, Group Retirement, Investment Management and Research, Protection Solutions, Wealth Management, and Legacy. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related services to various clients through institutional. The Protection Solutions segment provides life insurance products, such as VUL insurance and IUL insurance, term life, and employee benefits business, such as dental, vision, life, as well as short- and long-term disability insurance products to small and medium-sized businesses. The Wealth Management segment offers discretionary and non-discretionary investment advisory accounts, financial planning and advice, life insurance, and annuity products. The Legacy segment consists of the capital intensive fixed-rate GMxB business that includes ROP death benefits. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.