Critical Contrast: BitFuFu (NASDAQ:FUFU) versus loanDepot (NYSE:LDI)

loanDepot (NYSE:LDI) and BitFuFu (NASDAQ:FUFU) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for loanDepot and BitFuFu, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
loanDepot	1	2	0	0	1.67
BitFuFu	0	0	0	0	N/A

loanDepot presently has a consensus target price of $2.10, indicating a potential downside of 21.93%. Given loanDepot’s higher possible upside, research analysts plainly believe loanDepot is more favorable than BitFuFu.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
loanDepot	$707.87 million	1.23	-$110.14 million	($0.57)	-4.72
BitFuFu	$423.70 million	1.53	$10.49 million	N/A	N/A

BitFuFu has lower revenue, but higher earnings than loanDepot.

Volatility & Risk

loanDepot has a beta of 3.43, suggesting that its stock price is 243% more volatile than the S&P 500. Comparatively, BitFuFu has a beta of 0.17, suggesting that its stock price is 83% less volatile than the S&P 500.

Insider and Institutional Ownership

39.4% of loanDepot shares are held by institutional investors. Comparatively, 37.3% of BitFuFu shares are held by institutional investors. 83.0% of loanDepot shares are held by company insiders. Comparatively, 35.0% of BitFuFu shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
loanDepot	-11.22%	-18.22%	-2.01%
BitFuFu	N/A	N/A	N/A

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.

About BitFuFu

BitFuFu Inc. provides digital asset mining and cloud-mining services in Singapore. It also offers miner rental, and miner hosting and sales services to institutional customers and individual digital asset enthusiasts. The company is based in Singapore, Singapore.