Lendingclub (NASDAQ:HAPN – Get Free Report) is one of 121 public companies in the “Consumer Finance” industry, but how does it contrast to its competitors? We will compare Lendingclub to related companies based on the strength of its valuation, risk, analyst recommendations, dividends, institutional ownership, profitability and earnings.
Risk & Volatility
Lendingclub has a beta of 1.86, meaning that its stock price is 86% more volatile than the S&P 500. Comparatively, Lendingclub’s competitors have a beta of 1.24, meaning that their average stock price is 24% more volatile than the S&P 500.
Profitability
This table compares Lendingclub and its competitors’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lendingclub | 18.67% | 12.92% | 1.66% |
| Lendingclub Competitors | 9.51% | -33.33% | 2.25% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lendingclub | 0 | 1 | 2 | 0 | 2.67 |
| Lendingclub Competitors | 907 | 3399 | 5294 | 273 | 2.50 |
Lendingclub presently has a consensus price target of $25.00, indicating a potential upside of 55.19%. As a group, “Consumer Finance” companies have a potential upside of 15.59%. Given Lendingclub’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Lendingclub is more favorable than its competitors.
Valuation and Earnings
This table compares Lendingclub and its competitors gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Lendingclub | $1.05 billion | $135.68 million | 9.70 |
| Lendingclub Competitors | $65.28 billion | $381.70 million | 6.47 |
Lendingclub’s competitors have higher revenue and earnings than Lendingclub. Lendingclub is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
74.1% of Lendingclub shares are held by institutional investors. Comparatively, 46.3% of shares of all “Consumer Finance” companies are held by institutional investors. 3.3% of Lendingclub shares are held by company insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Lendingclub beats its competitors on 8 of the 13 factors compared.
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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