Critical Survey: loanDepot (NYSE:LDI) & RocketFuel Blockchain (OTCMKTS:RKFL)

loanDepot (NYSE:LDIGet Rating) and RocketFuel Blockchain (OTCMKTS:RKFLGet Rating) are both small-cap finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, risk, earnings, profitability, valuation, analyst recommendations and institutional ownership.

Valuation and Earnings

This table compares loanDepot and RocketFuel Blockchain’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
loanDepot $845.45 million 0.73 -$273.02 million ($1.74) -1.11
RocketFuel Blockchain $30,000.00 94.15 -$4.66 million ($0.14) -0.62

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

Risk & Volatility

loanDepot has a beta of 2.41, suggesting that its share price is 141% more volatile than the S&P 500. Comparatively, RocketFuel Blockchain has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares loanDepot and RocketFuel Blockchain’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
loanDepot -29.28% -44.95% -6.20%
RocketFuel Blockchain -4,533.66% -322.79% -216.22%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for loanDepot and RocketFuel Blockchain, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
loanDepot 1 7 0 0 1.88
RocketFuel Blockchain 0 0 0 0 N/A

loanDepot currently has a consensus target price of $1.83, suggesting a potential downside of 5.01%. Given loanDepot’s higher possible upside, equities research analysts clearly believe loanDepot is more favorable than RocketFuel Blockchain.

Insider and Institutional Ownership

3.5% of loanDepot shares are owned by institutional investors. 88.7% of loanDepot shares are owned by company insiders. Comparatively, 28.7% of RocketFuel Blockchain shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

loanDepot beats RocketFuel Blockchain on 8 of the 12 factors compared between the two stocks.

About loanDepot

(Get Rating)

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. The company 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 Foothill Ranch, California.

About RocketFuel Blockchain

(Get Rating)

RocketFuel Blockchain, Inc. operates as a crypto payments company. The firm provides check-out payment options using bitcoin and other cryptocurrencies along with consumer privacy protection solutions to eCommerce stores and merchants and their customers. Its check-out systems are designed to enhance customers’ data protection, enabling consumers to pay for goods and services using cryptocurrencies or by direct transfers from their bank accounts without exposing spending credentials such as credit card data. The company was founded on April 2, 1987 and is headquartered in San Francisco, CA.

Receive News & Ratings for loanDepot Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for loanDepot and related companies with MarketBeat.com's FREE daily email newsletter.