Head-To-Head Survey: Argo Blockchain (NASDAQ:ARBK) versus loanDepot (NYSE:LDI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Argo Blockchain	-93.70%	-4,172.69%	-50.32%
loanDepot	-8.95%	-14.66%	-1.49%

Volatility and Risk

Argo Blockchain has a beta of 1.88, indicating that its share price is 88% more volatile than the S&P 500. Comparatively, loanDepot has a beta of 3.46, indicating that its share price is 246% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Argo Blockchain and loanDepot, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Argo Blockchain	0	2	0	0	2.00
loanDepot	1	2	0	0	1.67

Argo Blockchain currently has a consensus target price of $1.45, suggesting a potential upside of 30.63%. loanDepot has a consensus target price of $2.60, suggesting a potential upside of 11.59%. Given Argo Blockchain’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Argo Blockchain is more favorable than loanDepot.

Earnings & Valuation

This table compares Argo Blockchain and loanDepot”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Argo Blockchain	$50.56 million	1.40	-$35.03 million	($0.81)	-1.37
loanDepot	$974.02 million	0.78	-$110.14 million	($0.52)	-4.48

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

Insider & Institutional Ownership

2.4% of Argo Blockchain shares are owned by institutional investors. Comparatively, 39.4% of loanDepot shares are owned by institutional investors. 83.0% of loanDepot shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

loanDepot beats Argo Blockchain on 8 of the 13 factors compared between the two stocks.

About Argo Blockchain

Argo Blockchain plc, together with its subsidiaries, engages in the bitcoin and other cryptocurrencies mining business worldwide. It engages in mining purpose-built computers for complex cryptographic algorithms. The company was formerly known as GoSun Blockchain Limited and changed its name to Argo Blockchain plc in December 2017. Argo Blockchain plc was incorporated in 2017 and is based in London, the United Kingdom.

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.