Comparing LendingClub (NYSE:LC) and Jiayin Group (NASDAQ:JFIN)

LendingClub (NYSE:LC) and Jiayin Group (NASDAQ:JFIN) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitability and institutional ownership.

Insider & Institutional Ownership

74.1% of LendingClub shares are held by institutional investors. Comparatively, 44.1% of Jiayin Group shares are held by institutional investors. 3.2% of LendingClub shares are held by insiders. Comparatively, 51.2% of Jiayin Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk and Volatility

LendingClub has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Jiayin Group has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and target prices for LendingClub and Jiayin Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LendingClub	0	2	6	1	2.89
Jiayin Group	1	0	0	0	1.00

LendingClub currently has a consensus price target of $23.07, indicating a potential upside of 20.10%. Given LendingClub’s stronger consensus rating and higher probable upside, analysts plainly believe LendingClub is more favorable than Jiayin Group.

Earnings and Valuation

This table compares LendingClub and Jiayin Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LendingClub	$1.03 billion	2.14	$135.68 million	$1.49	12.89
Jiayin Group	$4.05 billion	0.02	$219.61 million	$0.64	2.41

Jiayin Group has higher revenue and earnings than LendingClub. Jiayin Group is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LendingClub and Jiayin Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LendingClub	16.99%	11.92%	1.55%
Jiayin Group	5.39%	5.02%	2.57%

Summary

LendingClub beats Jiayin Group on 11 of the 15 factors compared between the two stocks.

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.

About Jiayin Group

Jiayin Group Inc., together with its subsidiaries, provides online consumer finance services in the People's Republic of China. The company operates a fintech platform that facilitates connections between individual borrowers and financial institutions. It also offers referral services for investment products offered by the financial service providers; and technology development and services, as well as guarantee services. The company was founded in 2011 and is headquartered in Shanghai, the People's Republic of China. Jiayin Group Inc. operates as a subsidiary of New Dream Capital Holdings Limited.