Lendingclub (HAPN) and Its Rivals Head-To-Head Analysis

Lendingclub (NASDAQ:HAPN) 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 businesses based on the strength of its profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Lendingclub and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendingclub	0	1	2	0	2.67
Lendingclub Competitors	906	3382	5283	272	2.50

Lendingclub currently has a consensus price target of $25.00, indicating a potential upside of 40.85%. As a group, “Consumer Finance” companies have a potential upside of 10.00%. Given Lendingclub’s stronger consensus rating and higher probable upside, equities analysts clearly believe Lendingclub is more favorable than its competitors.

Risk & Volatility

Lendingclub has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Lendingclub’s competitors have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.

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	$998.85 million	$135.68 million	10.69
Lendingclub Competitors	$3.57 billion	$381.70 million	6.93

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.

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	9.54%	-32.65%	2.25%

Institutional and Insider Ownership

74.1% of Lendingclub shares are owned by institutional investors. Comparatively, 46.3% of shares of all “Consumer Finance” companies are owned by institutional investors. 3.3% of Lendingclub shares are owned by insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Lendingclub beats its competitors on 8 of the 13 factors compared.

Lendingclub Company Profile

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.