Capital One Financial (NYSE:COF) and LendingClub (NYSE:LC) Head-To-Head Contrast

Capital One Financial (NYSE:COF) and LendingClub (NYSE:LC) are both finance companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, analyst recommendations, earnings, dividends and profitability.

Analyst Ratings

This is a summary of current recommendations and price targets for Capital One Financial and LendingClub, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Capital One Financial	0	3	21	0	2.88
LendingClub	0	2	6	1	2.89

Capital One Financial presently has a consensus target price of $258.91, suggesting a potential upside of 24.30%. LendingClub has a consensus target price of $23.07, suggesting a potential upside of 20.10%. Given Capital One Financial’s higher probable upside, equities analysts plainly believe Capital One Financial is more favorable than LendingClub.

Profitability

This table compares Capital One Financial and LendingClub’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Capital One Financial	13.37%	11.28%	1.90%
LendingClub	16.99%	11.92%	1.55%

Insider & Institutional Ownership

89.8% of Capital One Financial shares are owned by institutional investors. Comparatively, 74.1% of LendingClub shares are owned by institutional investors. 0.8% of Capital One Financial 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 & Earnings

This table compares Capital One Financial and LendingClub”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Capital One Financial	$62.02 billion	2.06	$2.45 billion	$16.16	12.89
LendingClub	$1.03 billion	2.14	$135.68 million	$1.49	12.89

Capital One Financial has higher revenue and earnings than LendingClub. Capital One Financial 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

Capital One Financial has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.98, indicating that its stock price is 98% more volatile than the S&P 500.

Summary

LendingClub beats Capital One Financial on 8 of the 15 factors compared between the two stocks.

About Capital One Financial

Capital One Financial Corporation operates as the financial services holding company for the Capital One, National Association, which engages in the provision of various financial products and services in the United States, Canada, and the United Kingdom. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company accepts checking accounts, money market deposits, negotiable order of withdrawals, savings deposits, and time deposits. Its loan products include credit card loans; auto and retail banking loans; and commercial and multifamily real estate, and commercial and industrial loans. The company also offers credit and debit card products; online direct banking services; and provides advisory, capital markets, treasury management, and depository services. It serves consumers, small businesses, and commercial clients through digital channels, branches, cafés, and other distribution channels located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and California. The company was founded in 1988 and is headquartered in McLean, Virginia.

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.