LendingTree (NASDAQ:TREE – Get Free Report) and Better Home & Finance (NASDAQ:BETR – Get Free Report) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Volatility and Risk
LendingTree has a beta of 1.94, indicating that its stock price is 94% more volatile than the S&P 500. Comparatively, Better Home & Finance has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for LendingTree and Better Home & Finance, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Better Home & Finance||0||0||0||0||N/A|
Earnings and Valuation
This table compares LendingTree and Better Home & Finance’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LendingTree||$984.99 million||0.21||-$187.95 million||($12.22)||-1.28|
|Better Home & Finance||$211.38 million||0.03||$8.74 million||0.07||9.87|
Better Home & Finance has lower revenue, but higher earnings than LendingTree. LendingTree is trading at a lower price-to-earnings ratio than Better Home & Finance, indicating that it is currently the more affordable of the two stocks.
This table compares LendingTree and Better Home & Finance’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Better Home & Finance||N/A||50.95%||3.25%|
Insider and Institutional Ownership
70.2% of LendingTree shares are owned by institutional investors. Comparatively, 0.6% of Better Home & Finance shares are owned by institutional investors. 23.0% of LendingTree shares are owned by insiders. Comparatively, 57.4% of Better Home & Finance shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Better Home & Finance beats LendingTree on 7 of the 13 factors compared between the two stocks.
LendingTree, Inc., through its subsidiary, LT Intermediate Company, LLC, operates online consumer platform in the United States. It operates through three segments: Home, Consumer, and Insurance. The Home segment offers purchase mortgage, refinance mortgage, reverse mortgage, and home equity loans; lines of credit; and real estate brokerage services. The Consumer segment provides credit cards; personal, small business, student, and auto loans; deposit accounts; and other credit products, such as credit repair and debt settlement services. The Insurance segment includes information, tools, and access to insurance quote products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers. In addition, the company offers QuoteWizard.com, a marketplace for insurance comparison; ValuePenguin, a personal finance website that offers consumers objective analysis on various financial topics from insurance to credit cards; and Stash, a consumer investing and banking platform that offers a suite of personal investment accounts, traditional and Roth IRAs, custodial investment accounts, and banking services, including checking accounts and debit cards with a Stock-Back rewards program. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was incorporated in 1996 and is based in Charlotte, North Carolina.
About Better Home & Finance
Better Mortgage Corporation operates as a mortgage banks and brokers company. It was formerly known as Avex Funding Corporation and changed its name to Better Mortgage Corporation in January 2017. The company is based in New York, New York.
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