Lendingclub (HAPN) and Its Competitors Head to Head Contrast

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendingclub	0	1	2	0	2.67
Lendingclub Competitors	895	3374	5262	269	2.50

Lendingclub presently has a consensus target price of $25.00, suggesting a potential upside of 35.72%. As a group, “Consumer Finance” companies have a potential upside of 10.39%. Given Lendingclub’s stronger consensus rating and higher possible upside, research analysts clearly believe Lendingclub is more favorable than its peers.

Risk & Volatility

Lendingclub has a beta of 1.91, meaning that its share price is 91% more volatile than the S&P 500. Comparatively, Lendingclub’s peers have a beta of 1.24, meaning that their average share price is 24% more volatile than the S&P 500.

Profitability

This table compares Lendingclub and its peers’ 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	9.95%	-32.17%	2.50%

Institutional & Insider Ownership

74.1% of Lendingclub shares are owned by institutional investors. Comparatively, 46.4% 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 large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Lendingclub and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lendingclub	$1.05 billion	$135.68 million	11.10
Lendingclub Competitors	$65.42 billion	$381.70 million	6.93

Lendingclub’s peers have higher revenue and earnings than Lendingclub. Lendingclub is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Lendingclub beats its peers 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.