Atlanticus (NASDAQ:ATLC – Get Free Report) and Lendingclub (NASDAQ:HAPN – Get Free Report) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, risk, dividends, analyst recommendations and institutional ownership.
Valuation and Earnings
This table compares Atlanticus and Lendingclub”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Atlanticus | $1.97 billion | 0.77 | $122.20 million | $6.70 | 14.90 |
| Lendingclub | $998.85 million | 2.24 | $135.68 million | $1.66 | 11.66 |
Profitability
This table compares Atlanticus and Lendingclub’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Atlanticus | 5.86% | 23.43% | 2.17% |
| Lendingclub | 18.67% | 12.92% | 1.66% |
Insider & Institutional Ownership
14.2% of Atlanticus shares are owned by institutional investors. Comparatively, 74.1% of Lendingclub shares are owned by institutional investors. 51.0% of Atlanticus shares are owned by insiders. Comparatively, 3.3% of Lendingclub shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility & Risk
Atlanticus has a beta of 2.11, suggesting that its share price is 111% more volatile than the S&P 500. Comparatively, Lendingclub has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Atlanticus and Lendingclub, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Atlanticus | 0 | 2 | 5 | 1 | 2.88 |
| Lendingclub | 0 | 1 | 2 | 0 | 2.67 |
Atlanticus currently has a consensus price target of $126.00, indicating a potential upside of 26.21%. Lendingclub has a consensus price target of $25.00, indicating a potential upside of 29.21%. Given Lendingclub’s higher probable upside, analysts plainly believe Lendingclub is more favorable than Atlanticus.
Summary
Atlanticus beats Lendingclub on 10 of the 15 factors compared between the two stocks.
About Atlanticus
Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.
About Lendingclub
LendingClub Corporation, operates as a bank holding company for LendingClub Bank, National Association that provides range of financial products and services through a technology-driven platform in the United States. The company provides commercial and industrial, commercial real estate, small business, and equipment loans, as well as leases equipment; and unsecured personal and auto, patient finance, and education finance loans. It also operates an online lending marketplace platform that connects borrowers and investors. LendingClub Corporation was incorporated in 2006 and is headquartered in San Francisco, California.
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