loanDepot, Inc. (LDI) vs Velocity Financial, Inc. (VEL)

loanDepot, Inc. and Velocity Financial, Inc. are both Mortgage Finance companies. Velocity Financial, Inc. is the larger, with a market value of $608.0M against $223.8M — 2.7× the size. loanDepot, Inc. has negative trailing earnings, so its P/E is not meaningful; Velocity Financial, Inc. trades at 5.6×. Velocity Financial, Inc. grew revenue faster over the last twelve months: 32.4% against 11.4%. Velocity Financial, Inc. has the higher net margin (0.00% vs −5.52%) and the lower return on invested capital (0.00% vs 0.72%). Across the 19 metrics below, Velocity Financial, Inc. leads on 14 and loanDepot, Inc. on 5.

Valuation

Metric LDI VEL Mortgage Finance median
P/E n/m 5.56 7.11
P/S 0.12 1.89 1.54
P/B 0.47 0.82 0.53
Price to free cash flow n/m 6.59 6.59
EV/EBITDA 44.36 7.84 22.03
EV/Sales 4.64 (0.71) 5.95
Earnings yield (44.78%) 17.98% 2.09%
Free cash flow yield (164.78%) 15.17% (16.97%)

Profitability

Metric LDI VEL Mortgage Finance median
Gross margin 87.54% 0.00% 84.40%
Operating margin 5.49% 0.00% 12.51%
Net margin (5.52%) 0.00% (0.83%)
Free cash flow margin (20.34%) 0.00% (45.06%)
Return on equity (17.97%) 16.02% (1.16%)
Return on assets (1.08%) 1.47% 0.38%
Return on invested capital 0.72% 0.00% 0.36%

Growth

Metric LDI VEL Mortgage Finance median
Revenue growth (TTM) 11.44% 32.40% 11.44%
EPS growth (last fiscal year) 43.40% 43.98% —
Revenue growth, 5-year CAGR (22.71%) 20.68% (11.16%)
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LDI VEL Mortgage Finance median
Debt to equity 17.94 9.29 1.22
Current ratio 1.11 42.53 1.38
Net debt to EBITDA 48.55 28.41 9.85

Dividend

Metric LDI VEL Mortgage Finance median
Dividend yield 18.71% — 5.81%
Payout ratio 0.00 0.00 0.00

Size

Metric LDI VEL Mortgage Finance median
Market cap 223.82m 608.01m 214.95m

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