LendingClub Corporation (NYSE: LC) and TPG RE Finance Trust (NASDAQ:TRTX) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Institutional & Insider Ownership

87.0% 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 large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for LendingClub Corporation and TPG RE Finance Trust, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingClub Corporation 0 9 7 0 2.44
TPG RE Finance Trust 0 2 3 0 2.60

LendingClub Corporation currently has a consensus price target of $6.82, suggesting a potential upside of 7.35%. TPG RE Finance Trust has a consensus price target of $21.20, suggesting a potential upside of 6.69%. Given LendingClub Corporation’s higher possible upside, equities analysts clearly believe LendingClub Corporation is more favorable than TPG RE Finance Trust.

Earnings and Valuation

This table compares LendingClub Corporation and TPG RE Finance Trust’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LendingClub Corporation $511.51 million 5.11 -$123.42 million ($0.30) -21.17
TPG RE Finance Trust N/A N/A N/A N/A N/A

TPG RE Finance Trust has higher revenue, but lower earnings than LendingClub Corporation.


This table compares LendingClub Corporation and TPG RE Finance Trust’s 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%
TPG RE Finance Trust 48.73% 10.27% 3.73%


LendingClub Corporation beats TPG RE Finance Trust on 5 of the 9 factors compared between the two stocks.

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.

About TPG RE Finance Trust

TPG RE Finance Trust, Inc. is a commercial real estate finance company. The Company is engaged in originating, acquiring and managing commercial mortgage loans and other commercial real estate-related debt instruments. It focuses primarily on directly originating and selectively acquiring floating rate first mortgage loans that are secured by high quality commercial real estate properties undergoing some form of transition and value creation, such as re-tenanting, refurbishment or other form of repositioning. As of December 31, 2016, the Company’s portfolio consisted of 54 first mortgage loans. As of December 31, 2016, 97% of the loan commitments in its portfolio consisted of floating rate loans, and 98.6% of the loan commitments in its portfolio consisted of first mortgage loans.

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