Analyzing LendingClub Corporation (LC) and The Competition
LendingClub Corporation (NYSE: LC) is one of 27 public companies in the “Consumer Lending” industry, but how does it compare to its rivals? We will compare LendingClub Corporation to similar companies based on the strength of its institutional ownership, valuation, dividends, earnings, analyst recommendations, risk and profitability.
This is a summary of recent ratings and target prices for LendingClub Corporation and its rivals, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LendingClub Corporation Competitors||163||654||1047||51||2.51|
LendingClub Corporation currently has a consensus target price of $6.82, suggesting a potential upside of 5.52%. As a group, “Consumer Lending” companies have a potential upside of 37.50%. Given LendingClub Corporation’s rivals stronger consensus rating and higher possible upside, analysts plainly believe LendingClub Corporation has less favorable growth aspects than its rivals.
Valuation & Earnings
This table compares LendingClub Corporation and its rivals top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|LendingClub Corporation||$511.51 million||N/A||-21.53|
|LendingClub Corporation Competitors||$564.84 million||$92.07 million||16.31|
LendingClub Corporation’s rivals have higher revenue and earnings than LendingClub Corporation. LendingClub Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
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 company insiders. Comparatively, 15.2% of shares of all “Consumer Lending” 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.
Volatility & Risk
LendingClub Corporation has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500. Comparatively, LendingClub Corporation’s rivals have a beta of 1.49, meaning that their average stock price is 49% more volatile than the S&P 500.
This table compares LendingClub Corporation and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LendingClub Corporation Competitors||-28.40%||-17.29%||0.55%|
LendingClub Corporation rivals beat LendingClub Corporation on 7 of the 11 factors compared.
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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