Financial Comparison: Lendingclub (HAPN) vs. Its Competitors

Lendingclub (NASDAQ:HAPN) is one of 121 publicly-traded companies in the “Consumer Finance” industry, but how does it contrast to its rivals? We will compare Lendingclub to related businesses based on the strength of its analyst recommendations, dividends, institutional ownership, earnings, profitability, valuation and risk.

Insider & Institutional 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 hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

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

Profitability

This table compares Lendingclub and its rivals’ 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%

Analyst Recommendations

This is a summary of recent ratings and price targets for Lendingclub and its rivals, as reported by MarketBeat.

	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 target price of $25.00, suggesting 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 possible upside, equities research analysts clearly believe Lendingclub is more favorable than its rivals.

Valuation and Earnings

This table compares Lendingclub and its rivals top-line revenue, earnings per share 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 rivals have higher revenue and earnings than Lendingclub. Lendingclub is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Lendingclub beats its rivals 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.