Contrasting Happen Bank (HAPN) & The Competition

Happen Bank (NASDAQ:HAPN) is one of 120 public companies in the “Consumer Finance” industry, but how does it contrast to its peers? We will compare Happen Bank to related companies based on the strength of its analyst recommendations, profitability, earnings, dividends, institutional ownership, valuation and risk.

Institutional and Insider Ownership

74.1% of Happen Bank shares are held by institutional investors. Comparatively, 45.7% of shares of all “Consumer Finance” companies are held by institutional investors. 3.3% of Happen Bank shares are held by company insiders. Comparatively, 22.0% of shares of all “Consumer Finance” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and target prices for Happen Bank and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Happen Bank	0	1	3	0	2.75
Happen Bank Competitors	895	3363	5295	276	2.50

Happen Bank currently has a consensus price target of $23.33, suggesting a potential upside of 48.43%. As a group, “Consumer Finance” companies have a potential upside of 21.24%. Given Happen Bank’s stronger consensus rating and higher probable upside, analysts clearly believe Happen Bank is more favorable than its peers.

Earnings & Valuation

This table compares Happen Bank and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Happen Bank	$1.05 billion	$135.68 million	8.78
Happen Bank Competitors	$4.13 billion	$385.17 million	4.57

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

Profitability

This table compares Happen Bank and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Happen Bank	20.16%	13.62%	1.71%
Happen Bank Competitors	10.48%	-15.61%	2.01%

Risk & Volatility

Happen Bank has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, Happen Bank’s peers have a beta of 1.26, indicating that their average share price is 26% more volatile than the S&P 500.

Summary

Happen Bank beats its peers on 8 of the 13 factors compared.

About Happen Bank

Happen Bank, originally founded as LendingClub in 2006, is a digital bank primarily built for high-FICO, high-income borrowers that are actively managing their financial lives. The company offers products to make financial progress both fast and easy. Additionally, the company provides advanced credit underwriting, a proprietary technology platform, and a marketplace bank model intended to drive value for members, loan investors, and shareholders. Happen Bank is headquartered in San Fancisco, California.