Contrasting Zillow Group (NASDAQ:ZG) and loanDepot (NYSE:LDI)

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

Risk & Volatility

Zillow Group has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500. Comparatively, loanDepot has a beta of 3.38, meaning that its share price is 238% more volatile than the S&P 500.

Insider and Institutional Ownership

20.3% of Zillow Group shares are held by institutional investors. Comparatively, 39.4% of loanDepot shares are held by institutional investors. 17.1% of Zillow Group shares are held by company insiders. Comparatively, 83.0% of loanDepot shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zillow Group	1	11	13	0	2.48
loanDepot	1	2	0	0	1.67

Zillow Group currently has a consensus price target of $85.62, indicating a potential upside of 2.11%. loanDepot has a consensus price target of $2.30, indicating a potential downside of 29.66%. Given Zillow Group’s stronger consensus rating and higher probable upside, equities analysts clearly believe Zillow Group is more favorable than loanDepot.

Valuation and Earnings

This table compares Zillow Group and loanDepot”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zillow Group	$2.39 billion	8.51	-$112.00 million	($0.26)	-322.50
loanDepot	$1.06 billion	1.02	-$98.33 million	($0.33)	-9.91

loanDepot has lower revenue, but higher earnings than Zillow Group. Zillow Group is trading at a lower price-to-earnings ratio than loanDepot, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Zillow Group and loanDepot’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zillow Group	-2.60%	-1.26%	-1.04%
loanDepot	-5.95%	-19.41%	-1.53%

Summary

Zillow Group beats loanDepot on 9 of the 14 factors compared between the two stocks.

About Zillow Group

Zillow Group, Inc. operates real estate brands in mobile applications and Websites in the United States. The company offers premier agent and rentals marketplaces, new construction marketplaces, advertising, display advertising, and business technology solutions, as well as dotloop and floor plans. It also provides mortgage originations and the sale of mortgages, and advertising to mortgage lenders and other mortgage professionals; and title and escrow services. In addition, the company's brand portfolio includes Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Trulia, StreetEasy, HotPads, and Out East; and a suite of marketing software and technology solutions for the real estate industry, including ShowingTime+, Spruce, and Follow Up Boss. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.

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.