Reviewing Lendingclub (HAPN) & Its Competitors

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

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	9.64%	-33.03%	2.25%

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lendingclub	$998.85 million	$135.68 million	9.80
Lendingclub Competitors	$3.57 billion	$381.70 million	6.49

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.

Analyst Ratings

This is a summary of recent ratings and target prices for Lendingclub and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendingclub	0	1	2	0	2.67
Lendingclub Competitors	906	3393	5292	272	2.50

Lendingclub currently has a consensus target price of $25.00, suggesting a potential upside of 53.75%. As a group, “Consumer Finance” companies have a potential upside of 15.09%. Given Lendingclub’s stronger consensus rating and higher possible upside, analysts plainly believe Lendingclub is more favorable than its rivals.

Volatility & Risk

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

Institutional and Insider Ownership

74.1% of Lendingclub shares are owned by institutional investors. Comparatively, 46.3% of shares of all “Consumer Finance” companies are owned by institutional investors. 3.3% of Lendingclub shares are owned by company insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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.