Analyzing Lendingclub (HAPN) and Its Competitors

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

Risk & Volatility

Lendingclub has a beta of 1.86, indicating that its stock price is 86% more volatile than the S&P 500. Comparatively, Lendingclub’s rivals have a beta of 1.24, indicating that their average stock price is 24% more volatile than the S&P 500.

Earnings and Valuation

This table compares Lendingclub and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Lendingclub	$1.05 billion	$135.68 million	9.73
Lendingclub Competitors	$65.28 billion	$381.70 million	6.46

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

Insider and Institutional Ownership

74.1% of Lendingclub shares are held by institutional investors. Comparatively, 46.3% of shares of all “Consumer Finance” companies are held by institutional investors. 3.3% of Lendingclub shares are held by company insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Lendingclub and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendingclub	0	1	2	0	2.67
Lendingclub Competitors	907	3399	5294	273	2.50

Lendingclub presently has a consensus price target of $25.00, suggesting a potential upside of 54.73%. As a group, “Consumer Finance” companies have a potential upside of 15.79%. Given Lendingclub’s stronger consensus rating and higher probable upside, equities analysts clearly believe Lendingclub is more favorable than its rivals.

Profitability

This table compares Lendingclub and its rivals’ 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	9.51%	-33.33%	2.25%

Summary

Lendingclub beats its rivals on 8 of the 13 factors compared.

Lendingclub Company Profile

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.