LDI vs RKT

For growth investors, loanDepot, Inc.

(LDI) is the stronger pick with 37. 6% revenue growth year-over-year, versus 34. 8% for Rocket Companies, Inc. (RKT). Rocket Companies, Inc. (RKT) offers the better valuation at 69. 8x trailing P/E (20. 0x forward), making it the more compelling value choice. Analysts rate loanDepot, Inc. (LDI) a "Hold" — based on 12 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, loanDepot, Inc.

is actually cheaper at 13. 0x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Rocket Companies, Inc.

(RKT) delivered a total return of -13. 4%, compared to -89. 9% for loanDepot, Inc. (LDI). Over 10 years, the gap is even starker: RKT returned -18. 3% versus LDI's -89. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Rocket Companies, Inc.

(RKT) is the lower-risk stock at 1. 77β versus loanDepot, Inc. 's 2. 11β — meaning LDI is approximately 19% more volatile than RKT relative to the S&P 500. On balance sheet safety, Rocket Companies, Inc. (RKT) carries a lower debt/equity ratio of 155% versus 13% for loanDepot, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), loanDepot, Inc.

(LDI) is pulling ahead at 37. 6% versus 34. 8% for Rocket Companies, Inc. (RKT). Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Rocket Companies, Inc.

(RKT) is the more profitable company, earning 0. 5% net margin versus -4. 1% for loanDepot, Inc. — meaning it keeps 0. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LDI leads at 13. 2% versus 12. 4% for RKT. At the gross margin level — before operating expenses — RKT leads at 91. 3%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, loanDepot, Inc.

(LDI) trades at 13. 0x forward P/E versus 20. 0x for Rocket Companies, Inc. — 7. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LDI: 48. 6% to $2. 08.

In this comparison, LDI (0.

8% yield) pays a dividend. RKT does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, loanDepot, Inc.

(LDI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (0. 8% yield). Rocket Companies, Inc. (RKT) carries a higher beta of 1. 77 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LDI: -89. 4%, RKT: -18. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

LDI pays a dividend while RKT does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.