Critical Analysis: loanDepot (NYSE:LDI) & ECN Capital (OTCMKTS:ECNCF)

ECN Capital (OTCMKTS:ECNCFGet Rating) and loanDepot (NYSE:LDIGet Rating) are both financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares ECN Capital and loanDepot’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ECN Capital N/A N/A N/A
loanDepot -29.28% -44.95% -6.20%

Analyst Ratings

This is a summary of current recommendations for ECN Capital and loanDepot, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ECN Capital 0 4 0 0 2.00
loanDepot 1 7 0 0 1.88

ECN Capital currently has a consensus target price of $4.92, suggesting a potential upside of 105.72%. loanDepot has a consensus target price of $1.83, suggesting a potential downside of 6.94%. Given ECN Capital’s stronger consensus rating and higher probable upside, analysts clearly believe ECN Capital is more favorable than loanDepot.

Earnings and Valuation

This table compares ECN Capital and loanDepot’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ECN Capital N/A N/A N/A N/A N/A
loanDepot $1.26 billion 0.50 -$273.02 million ($1.74) -1.13

ECN Capital has higher earnings, but lower revenue than loanDepot.

Institutional and Insider Ownership

3.5% of loanDepot shares are held by institutional investors. 83.9% of loanDepot shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

ECN Capital beats loanDepot on 5 of the 8 factors compared between the two stocks.

About ECN Capital

(Get Rating)

ECN Capital Corp. originates, manages, and advises on credit assets on behalf of its partners in North America. It operates through two segments, Manufactured Housing Finance; and Recreational Vehicle and Marine Finance. The company provides consumer loans, including manufactured housing, recreational vehicle, and marine loans; and commercial loans, such as inventory finance or floorplan loans. It serves banks, credit unions, life insurance companies, and pension and investment funds. The company was incorporated in 2016 and is headquartered in Toronto, Canada.

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. loanDepot, Inc. was founded in 2010 and is headquartered in Foothill Ranch, California.

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