Navient Corp (NASDAQ: NAVIV) and LendingClub Corporation (NYSE:LC) are both financials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Institutional & Insider Ownership

86.9% of LendingClub Corporation shares are owned by institutional investors. 11.4% of LendingClub Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Navient Corp and LendingClub Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navient Corp N/A N/A N/A N/A N/A
LendingClub Corporation $511.51 million 4.88 -$123.42 million ($0.30) -20.22

Navient Corp has higher revenue, but lower earnings than LendingClub Corporation.

Analyst Ratings

This is a summary of recent recommendations for Navient Corp and LendingClub Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navient Corp 0 0 0 0 N/A
LendingClub Corporation 0 9 7 0 2.44

LendingClub Corporation has a consensus target price of $6.82, suggesting a potential upside of 12.39%. Given LendingClub Corporation’s higher probable upside, analysts plainly believe LendingClub Corporation is more favorable than Navient Corp.

Profitability

This table compares Navient Corp and LendingClub Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navient Corp 31.91% 12.50% 0.38%
LendingClub Corporation -24.52% -11.97% -2.18%

Summary

LendingClub Corporation beats Navient Corp on 5 of the 8 factors compared between the two stocks.

Navient Corp Company Profile

Navient Corporation provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP). It operates through four segments: FFELP Loans, Private Education Loans, Business Services and Other. It also holds the portfolio of Private Education Loans. It services its own portfolio of education loans, as well as education loans owned by the United States Department of Education (ED), financial institutions and nonprofit education lenders. It also provides business processing services to education-related clients, such as guaranty agencies and colleges and universities. It provides additional business processing services to a range of other clients, including federal agencies, state and local governments, healthcare systems and other healthcare providers and municipalities.

LendingClub Corporation Company Profile

LendingClub Corporation provides online marketplace to connect borrowers and investors. Consumers and small business owners borrow through Lending Club. Investors use Lending Club to earn risk-adjusted returns from an asset class that has been closed to many investors and only available on a limited basis to large institutional investors. Its technology automates aspects of operations, including the borrower application process, data gathering, credit decisioning and scoring, loan funding, investing and servicing, regulatory compliance and fraud detection. Its platform offers analytical tools and data to enable investors to make decisions and assess their portfolios. Its technology platform has allowed it to expand its offerings from personal loans to include small business loans, and to expand investor classes from individuals to institutions and create various investment vehicles.

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