LendingClub (NYSE: DHX) and DHI Group (NYSE:DHX) are both small-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Profitability

This table compares LendingClub and DHI Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LendingClub -29.82% -3.78% -0.80%
DHI Group 8.57% 5.98% 2.78%

Earnings & Valuation

This table compares LendingClub and DHI Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LendingClub $574.54 million 2.82 -$153.83 million ($0.17) -22.53
DHI Group $207.95 million 0.61 $15.97 million $0.15 15.67

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

Analyst Recommendations

This is a breakdown of current recommendations for LendingClub and DHI Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingClub 0 7 6 0 2.46
DHI Group 0 1 0 0 2.00

LendingClub currently has a consensus target price of $5.69, indicating a potential upside of 48.50%. DHI Group has a consensus target price of $2.00, indicating a potential downside of 14.89%. Given LendingClub’s stronger consensus rating and higher possible upside, analysts plainly believe LendingClub is more favorable than DHI Group.

Insider & Institutional Ownership

87.5% of LendingClub shares are held by institutional investors. Comparatively, 65.7% of DHI Group shares are held by institutional investors. 4.0% of LendingClub shares are held by company insiders. Comparatively, 4.6% of DHI Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Volatility & Risk

LendingClub has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, DHI Group has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500.

LendingClub Company Profile

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.

DHI Group Company Profile

DHI Group, Inc. provides data, insights, and connections services to professional communities in the United States and internationally. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees. It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology; Rigzone, a Website that delivers online content, data, and career services in the oil and gas industry; Hcareers, a Website for hospitality jobs in North America; and BioSpace, a resource for biotechnology careers, news, and resources in the area of life sciences. Further, it operates Targeted Job Fairs for technology, energy, and security-cleared professionals. The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1991 and is headquartered in New York, New York.

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