DHI Group (NYSE: LC) and LendingClub (NYSE:LC) are both small-cap computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.
Risk and Volatility
DHI Group has a beta of 1.06, indicating that its stock price is 6% more volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.34, indicating that its stock price is 34% more volatile than the S&P 500.
This table compares DHI Group and LendingClub’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
65.7% of DHI Group shares are owned by institutional investors. Comparatively, 87.5% of LendingClub shares are owned by institutional investors. 4.6% of DHI Group shares are owned by company insiders. Comparatively, 4.0% of LendingClub shares are owned 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.
Valuation & Earnings
This table compares DHI Group and LendingClub’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DHI Group||$207.95 million||0.56||$15.97 million||$0.15||14.33|
|LendingClub||$574.54 million||2.74||-$153.83 million||($0.17)||-21.88|
DHI Group has higher earnings, but lower revenue than LendingClub. LendingClub is trading at a lower price-to-earnings ratio than DHI Group, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for DHI Group and LendingClub, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DHI Group currently has a consensus target price of $2.00, suggesting a potential downside of 6.98%. LendingClub has a consensus target price of $5.69, suggesting a potential upside of 52.89%. Given LendingClub’s stronger consensus rating and higher possible upside, analysts plainly believe LendingClub is more favorable than DHI Group.
DHI Group Company Profile
DHI Group, Inc. provides data, insights, and connections services to professional communities in the United States and internationally. The company operates Dice that offers job postings of technology and non-technology companies for industries, such as positions for software engineers, big data professionals, systems administrators, database specialists, project managers, and other technology and engineering professionals; and ClearanceJobs, an Internet-based career network, which matches security-cleared professionals with hiring companies searching for employees. It also provides eFinancialCareers, a financial services careers Website for financial services industry professionals from various sectors, including asset management, risk management, investment banking, and information technology; Rigzone, a Website that delivers online content, data, and career services in the oil and gas industry; Hcareers, a Website for hospitality jobs in North America; and BioSpace, a resource for biotechnology careers, news, and resources in the area of life sciences. Further, it operates Targeted Job Fairs for technology, energy, and security-cleared professionals. The company serves small, mid-sized, and large direct employers; staffing companies; recruiting agencies; consulting firms; and marketing departments of companies. The company was formerly known as Dice Holdings, Inc. and changed its name to DHI Group, Inc. in April 2015. DHI Group, Inc. was founded in 1991 and is headquartered in New York, New York.
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.
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