Critical Review: LendingTree (NASDAQ:TREE) versus Better Home & Finance (NASDAQ:BETR)

LendingTree (NASDAQ:TREEGet Free Report) and Better Home & Finance (NASDAQ:BETRGet Free Report) are both small-cap finance companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

LendingTree has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, Better Home & Finance has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Valuation and Earnings

This table compares LendingTree and Better Home & Finance’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LendingTree $822.85 million 0.25 -$187.95 million ($12.22) -1.29
Better Home & Finance $211.38 million 0.03 $8.74 million 0.07 9.20

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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for LendingTree and Better Home & Finance, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingTree 0 2 4 0 2.67
Better Home & Finance 0 0 0 0 N/A

LendingTree currently has a consensus target price of $32.50, suggesting a potential upside of 106.74%. Given LendingTree’s higher probable upside, equities research analysts plainly believe LendingTree is more favorable than Better Home & Finance.


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
LendingTree -18.93% -13.25% -2.62%
Better Home & Finance N/A 50.95% 3.25%

Institutional & Insider Ownership

70.2% of LendingTree shares are held by institutional investors. Comparatively, 0.6% of Better Home & Finance shares are held by institutional investors. 23.0% of LendingTree shares are held by company insiders. Comparatively, 57.4% of Better Home & Finance shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.


Better Home & Finance beats LendingTree on 7 of the 13 factors compared between the two stocks.

About LendingTree

(Get Free Report)

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, 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, 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

(Get Free Report)

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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