Western Asset Mortgage Capital Corporation (WMC) and LendingTree Inc. (NASDAQ:TREE) Contrasting side by side

Both Western Asset Mortgage Capital Corporation (NYSE:WMC) and LendingTree Inc. (NASDAQ:TREE) compete on a level playing field in the Mortgage Investment industry. We will evaluate their performance with regards to profitability, analyst recommendations, risk, dividends, institutional ownership, earnings and valuation.

Earnings & Valuation

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Western Asset Mortgage Capital Corporation 49.79M 10.16 26.27M 1.56 6.45
LendingTree Inc. 764.87M 5.71 109.32M 7.85 39.83

We can see in table 1 the earnings per share (EPS), top-line revenue and valuation of Western Asset Mortgage Capital Corporation and LendingTree Inc. LendingTree Inc. seems to has higher revenue and earnings compared to Western Asset Mortgage Capital Corporation. When company has lower P/E means it is more affordable than its counterpart currently. Western Asset Mortgage Capital Corporation has been trading at a lower P/E ratio than LendingTree Inc., which means that it is at the moment the more affordable of the two companies.

Profitability

Table 2 has Western Asset Mortgage Capital Corporation and LendingTree Inc.’s net margins, return on assets and return on equity.

Net Margins Return on Equity Return on Assets
Western Asset Mortgage Capital Corporation 52.76% 13.6% 1.3%
LendingTree Inc. 14.29% 22.4% 10.6%

Risk & Volatility

Western Asset Mortgage Capital Corporation has a 0.73 beta, while its volatility is 27.00% which is less volatile than Standard & Poor’s 500. LendingTree Inc. on the other hand, has 2.39 beta which makes it 139.00% more volatile compared to Standard & Poor’s 500.

Dividends

Western Asset Mortgage Capital Corporation pays out a $1.24 per share dividend on a yearly basis and it also offers 11.99% dividend yield. LendingTree Inc. does not offer a dividend.

Analyst Ratings

The next table highlights the delivered recommendations and ratings for Western Asset Mortgage Capital Corporation and LendingTree Inc.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Western Asset Mortgage Capital Corporation 0 0 0 0.00
LendingTree Inc. 0 3 1 2.25

Meanwhile, LendingTree Inc.’s consensus price target is $315, while its potential downside is -7.54%.

Insider & Institutional Ownership

Roughly 51.3% of Western Asset Mortgage Capital Corporation shares are held by institutional investors while 87.9% of LendingTree Inc. are owned by institutional investors. Insiders held roughly 0.61% of Western Asset Mortgage Capital Corporation’s shares. On the other hand, insiders held about 5% of LendingTree Inc.’s shares.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Western Asset Mortgage Capital Corporation 0.7% 5.02% -0.1% -8.89% 12.94% 20.38%
LendingTree Inc. -2.49% 5.43% 22.6% 27.42% -9.42% 42.3%

For the past year Western Asset Mortgage Capital Corporation was less bullish than LendingTree Inc.

Summary

LendingTree Inc. beats on 12 of the 15 factors Western Asset Mortgage Capital Corporation.

LendingTree, Inc., through its subsidiary, LendingTree, LLC, operates an online loan marketplace for consumers seeking loans and other credit-based offerings in the United States. The company offers tools and resources, including free credit scores that facilitate comparison shopping for these loans and other credit-based offerings. Its mortgage products comprise purchase and refinance products. The company also provides information, tools, and access to various conditional loan offers for non-mortgage products, including auto loans, credit cards, home equity loans, personal loans, reverse mortgages, small business loans, and student loans. In addition, it offers information, tools, and access to other products, including credit repair, through which consumers obtain assistance improving their credit profiles; debt relief services, through which consumers obtain assistance negotiating existing loans; and home improvement services, through which consumers have the opportunity to research and find home improvement professional services. Further, the company provides personal credit data, through which consumers gain insights into how prospective lenders and other third parties view their credit profiles; real estate brokerage services, through which consumers are matched with local realtors who assist them in their home purchase or sale efforts; and various consumer insurance products, including home and automobile, through which consumers are matched with insurance lead aggregators to obtain insurance offers. Additionally, it operates CompareCards, an online source for side-by-side credit card comparison shopping; and SimpleTuition, an online marketing platform for student loans. The company was formerly known as Tree.com, Inc. and changed its name to LendingTree, Inc. in January 2015. LendingTree, Inc. was founded in 1996 and is headquartered in Charlotte, North Carolina.