LendingClub (NYSE: LC) and Healthequity (NASDAQ:HQY) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, institutional ownership and earnings.
Valuation and Earnings
This table compares LendingClub and Healthequity’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|LendingClub||$574.54 million||2.77||-$153.83 million||($0.17)||-22.29|
|Healthequity||$229.52 million||20.30||$47.36 million||$0.54||139.07|
Healthequity has lower revenue, but higher earnings than LendingClub. LendingClub is trading at a lower price-to-earnings ratio than Healthequity, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
83.2% of LendingClub shares are held by institutional investors. Comparatively, 96.6% of Healthequity shares are held by institutional investors. 9.7% of LendingClub shares are held by company insiders. Comparatively, 4.0% of Healthequity shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This is a breakdown of current recommendations and price targets for LendingClub and Healthequity, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LendingClub presently has a consensus target price of $5.69, indicating a potential upside of 50.19%. Healthequity has a consensus target price of $77.90, indicating a potential upside of 3.73%. Given LendingClub’s higher possible upside, equities research analysts plainly believe LendingClub is more favorable than Healthequity.
This table compares LendingClub and Healthequity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk and Volatility
LendingClub has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Healthequity has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.
Healthequity beats LendingClub on 9 of the 12 factors compared between the two stocks.
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.
Healthequity Company Profile
HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company offers healthcare saving and spending platform, a cloud-based platform for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides mutual fund investment platform; and online-only investment advisory services through Advisor, a Web-based tool. In addition, the company offers health reimbursement and flexible spending arrangements solutions; and Employee Retirement Income Security Act's plan administration and investment services. HealthEquity, Inc. was founded in 2002 and is headquartered in Draper, Utah.
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