Reviewing Lendingclub (HAPN) and The Competition

Lendingclub (NASDAQ:HAPN) is one of 121 publicly-traded companies in the “Consumer Finance” industry, but how does it weigh in compared to its competitors? We will compare Lendingclub to related businesses based on the strength of its dividends, valuation, profitability, risk, institutional ownership, analyst recommendations and earnings.

Earnings and Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Lendingclub	$998.85 million	$135.68 million	9.89
Lendingclub Competitors	$3.58 billion	$381.70 million	6.53

Lendingclub’s competitors have higher revenue and earnings than Lendingclub. Lendingclub is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Lendingclub and its competitors’ 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%

Institutional & Insider Ownership

74.1% of Lendingclub shares are held by institutional investors. Comparatively, 46.3% of shares of all “Consumer Finance” companies are held by institutional investors. 3.3% of Lendingclub shares are held by insiders. Comparatively, 21.8% of shares of all “Consumer Finance” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

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

Analyst Ratings

This is a summary of recent ratings and price targets for Lendingclub and its competitors, as reported 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 presently has a consensus target price of $25.00, suggesting a potential upside of 52.35%. As a group, “Consumer Finance” companies have a potential upside of 13.93%. Given Lendingclub’s stronger consensus rating and higher possible upside, analysts plainly believe Lendingclub is more favorable than its competitors.

Summary

Lendingclub beats its competitors on 8 of the 13 factors compared.

About Lendingclub

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.