Head to Head Comparison: Lendingclub (NASDAQ:HAPN) versus LendingClub (NYSE:LC)
by Mitch Edgeman · The Markets DailyLendingClub (NYSE:LC – Get Free Report) and Lendingclub (NASDAQ:HAPN – Get Free Report) are both mid-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares LendingClub and Lendingclub’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LendingClub | 16.99% | 11.92% | 1.55% |
| Lendingclub | 18.67% | 12.92% | 1.66% |
Valuation and Earnings
This table compares LendingClub and Lendingclub”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LendingClub | $1.03 billion | 2.14 | $135.68 million | $1.49 | 12.89 |
| Lendingclub | $998.85 million | 2.05 | $135.68 million | $1.66 | 10.69 |
Lendingclub is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
LendingClub has a beta of 1.98, meaning that its share price is 98% more volatile than the S&P 500. Comparatively, Lendingclub has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500.
Insider & Institutional Ownership
74.1% of LendingClub shares are owned by institutional investors. Comparatively, 74.1% of Lendingclub shares are owned by institutional investors. 3.2% of LendingClub shares are owned by company insiders. Comparatively, 3.3% of Lendingclub shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for LendingClub and Lendingclub, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LendingClub | 0 | 2 | 6 | 1 | 2.89 |
| Lendingclub | 0 | 1 | 2 | 0 | 2.67 |
LendingClub presently has a consensus target price of $23.07, suggesting a potential upside of 20.10%. Lendingclub has a consensus target price of $25.00, suggesting a potential upside of 40.85%. Given Lendingclub’s higher probable upside, analysts clearly believe Lendingclub is more favorable than LendingClub.
Summary
LendingClub beats Lendingclub on 8 of the 14 factors compared between the two stocks.
About LendingClub
LendingClub Corporation, operates as a bank holding company, that provides range of financial products and services in the United States. It offers deposit products, including savings accounts, checking accounts, and certificates of deposit. The company also provides loan products, such as consumer loans comprising unsecured personal loans, secured auto refinance loans, and patient and education finance loans; and commercial loans, including small business loans. In addition, it operates an online lending marketplace platform. The company was incorporated in 2006 and is headquartered in San Francisco, California.
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.