CAPITA GRP/ADR (OTCMKTS:CTAGY) and LendingClub (NYSE:LC) are both business services companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CAPITA GRP/ADR and LendingClub, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CAPITA GRP/ADR 0 0 0 0 N/A
LendingClub 0 1 2 0 2.67

LendingClub has a consensus price target of $21.67, suggesting a potential upside of 57.81%. Given LendingClub’s higher probable upside, analysts plainly believe LendingClub is more favorable than CAPITA GRP/ADR.

Earnings and Valuation

This table compares CAPITA GRP/ADR and LendingClub’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CAPITA GRP/ADR $5.23 billion N/A $359.06 million $0.86 6.33
LendingClub $694.81 million 1.72 -$128.30 million ($0.35) -39.23

CAPITA GRP/ADR has higher revenue and earnings than LendingClub. LendingClub is trading at a lower price-to-earnings ratio than CAPITA GRP/ADR, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

CAPITA GRP/ADR has a beta of 0.15, indicating that its stock price is 85% less volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Profitability

This table compares CAPITA GRP/ADR and LendingClub’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CAPITA GRP/ADR N/A N/A N/A
LendingClub -9.14% -2.67% -0.67%

Summary

CAPITA GRP/ADR beats LendingClub on 6 of the 9 factors compared between the two stocks.

About CAPITA GRP/ADR

Capita plc provides customer management, administration, and professional support services to clients in the private and public sectors. The company offers automation, business transformation, customer management, data and analytics, digital transformation, government, IT and networks, people, and software solutions and services, as well as specialist services, such as intelligent communications, financial, legal, travel and event, start-up development, property and infrastructure, procurement, and translation and interpreting, and workplace technology services. Capita plc provides its services to banking and financial services, insurance, life and pensions, retail, telecoms and media, transport, utilities, central and local government, defense, education, emergency services, health, police and justice, and science sectors. The company operates in the United Kingdom, Ireland, Northern Europe, the United States, India, South Africa, and Dubai. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is headquartered in London, the United Kingdom.

About LendingClub

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

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