Zillow Group Inc Class C (NASDAQ: Z) and LendingClub (NYSE:LC) are both finance companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, profitability, analyst recommendations, earnings, dividends and risk.

Volatility and Risk

Zillow Group Inc Class C has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Insider and Institutional Ownership

60.1% of Zillow Group Inc Class C shares are owned by institutional investors. Comparatively, 82.7% of LendingClub shares are owned by institutional investors. 58.1% of Zillow Group Inc Class C shares are owned by company insiders. Comparatively, 4.0% of LendingClub shares are owned by company 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 Zillow Group Inc Class C and LendingClub’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Zillow Group Inc Class C -9.59% -0.40% -0.33%
LendingClub -25.79% -5.62% -1.15%

Analyst Recommendations

This is a summary of current ratings and price targets for Zillow Group Inc Class C and LendingClub, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Zillow Group Inc Class C 0 5 3 0 2.38
LendingClub 0 8 6 0 2.43

Zillow Group Inc Class C presently has a consensus target price of $56.11, indicating a potential upside of 13.21%. LendingClub has a consensus target price of $5.70, indicating a potential upside of 39.46%. Given LendingClub’s stronger consensus rating and higher probable upside, analysts plainly believe LendingClub is more favorable than Zillow Group Inc Class C.

Earnings & Valuation

This table compares Zillow Group Inc Class C and LendingClub’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Zillow Group Inc Class C $1.08 billion 8.90 -$94.42 million $0.15 330.40
LendingClub $574.54 million 2.99 -$153.83 million ($0.17) -24.06

Zillow Group Inc Class C has higher revenue and earnings than LendingClub. LendingClub is trading at a lower price-to-earnings ratio than Zillow Group Inc Class C, indicating that it is currently the more affordable of the two stocks.

Summary

Zillow Group Inc Class C beats LendingClub on 8 of the 13 factors compared between the two stocks.

About Zillow Group Inc Class C

Zillow Group, Inc. operates real estate and home-related information marketplaces on mobile and the Web in the United States. The company offers a portfolio of brands and products to enable consumers find information about homes and connect with local professionals. Its brands focus on various stages of the home lifecycle, including renting, buying, selling, and financing. The company's portfolio of consumer brands comprise real estate and rental marketplaces, such as Zillow, Trulia, StreetEasy, HotPads, Naked Apartments, RealEstate.com, and OutEast.com. It also provides a suite of marketing software and technology solutions; and owns and operates various business brands for real estate, rental, and mortgage professionals comprising Mortech, dotloop, Bridge Interactive, and New Home Feed. In addition, the company offers advertising services. Zillow Group, Inc. was incorporated in 2004 and is headquartered in Seattle, Washington.

About LendingClub

LendingClub Corporation operates an online marketplace platform that connects borrowers and investors in the United States. Its marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, unsecured education and patient finance loans, auto refinance loans, and unsecured small business loans. The company also provides an opportunity to the investors to invest in a range of loans based on term and credit. LendingClub Corporation was founded in 2006 and is headquartered in San Francisco, California.

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