LexinFintech (NASDAQ:LX – Get Free Report) and LendingClub (NYSE:LC – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.
Profitability
This table compares LexinFintech and LendingClub’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LexinFintech | 7.94% | 8.59% | 4.50% |
| LendingClub | 16.99% | 11.92% | 1.55% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for LexinFintech and LendingClub, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LexinFintech | 1 | 2 | 0 | 0 | 1.67 |
| LendingClub | 0 | 2 | 6 | 1 | 2.89 |
Insider & Institutional Ownership
74.1% of LendingClub shares are owned by institutional investors. 27.8% of LexinFintech shares are owned by company insiders. Comparatively, 3.2% of LendingClub shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares LexinFintech and LendingClub”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LexinFintech | $1.88 billion | 0.07 | $239.82 million | $0.84 | 0.89 |
| LendingClub | $1.03 billion | 2.14 | $135.68 million | $1.49 | 12.89 |
LexinFintech has higher revenue and earnings than LendingClub. LexinFintech is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
LexinFintech has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.98, indicating that its share price is 98% more volatile than the S&P 500.
Summary
LendingClub beats LexinFintech on 10 of the 15 factors compared between the two stocks.
About LexinFintech
LexinFintech Holdings Ltd., through its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates Fenqile.com, an online consumption and consumer finance platform that offers installment purchase and personal installment loans, as well as online direct sales with installment payment terms; and Le Hua Card, a scenario-based lending. It also provides technology-driven platform services for financial institution customers and partners to increase revenues, manage financial risks, enhance operating efficiency and service quality, enhance collections, and reduce overall costs; Maiya application, a location-based services shopping experience with buy-now and pay-later options; and Juzi Licai, an online investment platform. In addition, the company offers technical support and consulting, software development, financing guarantee, and financial technology services. The company was formerly known as Staging Finance Holding Ltd. and changed its name to LexinFintech Holdings Ltd. in March 2017. LexinFintech Holdings Ltd. was founded in 2013 and is headquartered in Shenzhen, the People's Republic of China.
About LendingClub
LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit. The company also provides loan products, such as consumer loans comprising unsecured personal loans, secured auto refinance loans, and patient and education finance loans; and commercial loans, including small business loans. In addition, it operates an online lending marketplace platform. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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