Critical Survey: Atlanticus (NASDAQ:ATLCP) versus LendingClub (NYSE:LC)

Atlanticus (NASDAQ:ATLCP) and LendingClub (NYSE:LC) are both financial services companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

74.1% of LendingClub shares are owned by institutional investors. 3.3% of LendingClub shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Atlanticus and LendingClub”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atlanticus	$316.89 million	N/A	N/A	N/A	N/A
LendingClub	$787.01 million	1.91	$51.33 million	$0.44	29.91

LendingClub has higher revenue and earnings than Atlanticus.

Analyst Ratings

This is a breakdown of current ratings and price targets for Atlanticus and LendingClub, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atlanticus	0	0	0	0	0.00
LendingClub	0	3	6	0	2.67

LendingClub has a consensus target price of $16.71, indicating a potential upside of 27.02%. Given LendingClub’s stronger consensus rating and higher probable upside, analysts plainly believe LendingClub is more favorable than Atlanticus.

Profitability

This table compares Atlanticus and LendingClub’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atlanticus	N/A	N/A	N/A
LendingClub	6.16%	4.04%	0.52%

Summary

LendingClub beats Atlanticus on 9 of the 9 factors compared between the two stocks.

About Atlanticus

Atlanticus Holdings Corporation, a financial technology company, provides credit and related financial services and products to customers the United States. It operates in two segments, Credit as a Service, and Auto Finance. The Credit as a Service segment originates a range of consumer loan products, such as private label and general purpose credit cards originated by lenders through various channels, including retail and healthcare, direct mail solicitation, digital marketing, and partnerships with third parties; and offers credit to their customers for the purchase of various goods and services, including consumer electronics, furniture, elective medical procedures, healthcare, and home-improvements by partnering with retailers, healthcare providers, and other service providers. This segment also offers loan servicing, such as risk management and customer service outsourcing for third parties; and engages in testing and investment activities in consumer finance technology platforms. The Auto Finance segment purchases and/or services loans secured by automobiles from or for a pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here, pay-here, and used car business. This segment also provides floor plan financing and installment lending products. It also invests in and services portfolios of credit card receivables. The company was founded in 1996 and is headquartered in Atlanta, Georgia.

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.