LendingClub Corporation (NYSE: LC) is one of 27 public companies in the “Consumer Lending” industry, but how does it contrast to its competitors? We will compare LendingClub Corporation to similar companies based on the strength of its valuation, analyst recommendations, institutional ownership, earnings, risk, dividends and profitability.

Institutional and Insider Ownership

87.0% of LendingClub Corporation shares are owned by institutional investors. Comparatively, 77.5% of shares of all “Consumer Lending” companies are owned by institutional investors. 11.4% of LendingClub Corporation shares are owned by insiders. Comparatively, 15.2% of shares of all “Consumer Lending” 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.

Profitability

This table compares LendingClub Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LendingClub Corporation -24.52% -11.97% -2.18%
LendingClub Corporation Competitors -28.26% -17.28% 0.63%

Analyst Recommendations

This is a breakdown of current ratings and target prices for LendingClub Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingClub Corporation 0 9 7 0 2.44
LendingClub Corporation Competitors 154 645 1039 51 2.52

LendingClub Corporation presently has a consensus price target of $6.82, suggesting a potential upside of 6.34%. As a group, “Consumer Lending” companies have a potential upside of 49.40%. Given LendingClub Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe LendingClub Corporation has less favorable growth aspects than its competitors.

Volatility and Risk

LendingClub Corporation has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500. Comparatively, LendingClub Corporation’s competitors have a beta of 1.49, suggesting that their average stock price is 49% more volatile than the S&P 500.

Valuation and Earnings

This table compares LendingClub Corporation and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
LendingClub Corporation $511.51 million N/A -21.37
LendingClub Corporation Competitors $564.84 million $92.07 million 17.00

LendingClub Corporation’s competitors have higher revenue and earnings than LendingClub Corporation. LendingClub Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

LendingClub Corporation competitors beat LendingClub Corporation on 7 of the 11 factors compared.

About LendingClub Corporation

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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