WallStSmart

Loandepot Inc (LDI)vsVelocity Financial Llc (VEL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Loandepot Inc generates 344% more annual revenue ($1.26B vs $284.11M). VEL leads profitability with a 37.9% profit margin vs -5.5%. VEL earns a higher WallStSmart Score of 64/100 (C+).

LDI

Hold

36

out of 100

Grade: F

Growth: 4.0Profit: 2.0Value: 5.0Quality: 3.0
Piotroski: 4/9Altman Z: -0.22

VEL

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 6.7Quality: 3.0
Piotroski: 5/9Altman Z: 0.41

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LDI1 strengths · Avg: 10.0/10
Price/BookValuation
1.0x10/10

Reasonable price relative to book value

VEL5 strengths · Avg: 9.6/10
P/E RatioValuation
6.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.0x10/10

Reasonable price relative to book value

Profit MarginProfitability
37.9%10/10

Keeps 38 of every $100 in revenue as profit

Operating MarginProfitability
52.1%10/10

Strong operational efficiency at 52.1%

Revenue GrowthGrowth
22.7%8/10

Revenue surging 22.7% year-over-year

Areas to Watch

LDI4 concerns · Avg: 2.3/10
Market CapQuality
$417.66M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-34.5%2/10

ROE of -34.5% — below average capital efficiency

EPS GrowthGrowth
-98.8%2/10

Earnings declined 98.8%

Altman Z-ScoreHealth
-0.222/10

Distress zone — elevated risk

VEL4 concerns · Avg: 2.0/10
Market CapQuality
$727.64M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-6.9%2/10

Earnings declined 6.9%

Altman Z-ScoreHealth
0.412/10

Distress zone — elevated risk

Debt/EquityHealth
9.771/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : LDI

The strongest argument for LDI centers on Price/Book.

Bull Case : VEL

The strongest argument for VEL centers on P/E Ratio, Price/Book, Profit Margin. Profitability is solid with margins at 37.9% and operating margin at 52.1%. Revenue growth of 22.7% demonstrates continued momentum.

Bear Case : LDI

The primary concerns for LDI are Market Cap, Return on Equity, EPS Growth. Debt-to-equity of 22.93 is elevated, increasing financial risk.

Bear Case : VEL

The primary concerns for VEL are Market Cap, EPS Growth, Altman Z-Score. Debt-to-equity of 9.77 is elevated, increasing financial risk.

Key Dynamics to Monitor

LDI profiles as a turnaround stock while VEL is a growth play — different risk/reward profiles.

LDI carries more volatility with a beta of 3.12 — expect wider price swings.

VEL is growing revenue faster at 22.7% — sustainability is the question.

LDI generates stronger free cash flow (510M), providing more financial flexibility.

Bottom Line

VEL scores higher overall (64/100 vs 36/100), backed by strong 37.9% margins and 22.7% revenue growth. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Loandepot Inc

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

LoanDepot, Inc. is dedicated to the origination and servicing of conventional and government mortgage loans in the United States. The company is headquartered in Foothill Ranch, California.

Velocity Financial Llc

FINANCIAL SERVICES · MORTGAGE FINANCE · USA

Velocity Financial, Inc. is a real estate finance company in the United States. The company is headquartered in Westlake Village, California.

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