LendingClub (NYSE:LC) versus Sezzle (OTC:SEZNL) Critical Survey

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

Institutional and Insider Ownership

74.1% of LendingClub shares are owned by institutional investors. 3.2% of LendingClub shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sezzle	N/A	N/A	N/A
LendingClub	8.36%	5.66%	0.72%

Analyst Ratings

This is a breakdown of recent recommendations for Sezzle and LendingClub, as reported by MarketBeat.

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

LendingClub has a consensus target price of $16.5714, indicating a potential upside of 5.53%. Given LendingClub’s stronger consensus rating and higher possible upside, analysts plainly believe LendingClub is more favorable than Sezzle.

Earnings and Valuation

This table compares Sezzle and LendingClub”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sezzle	N/A	N/A	N/A	N/A	N/A
LendingClub	$787.01 million	2.29	$51.33 million	$0.64	24.54

LendingClub has higher revenue and earnings than Sezzle.

Summary

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

About Sezzle

Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada. The company provides payment solution at online stores and various brick-and-mortar retail locations that connects consumers with merchants. Its platform enables customers to make online purchases and split the payment for the purchase in four equal interest free payments over six weeks. Sezzle Inc. was incorporated in 2016 and is headquartered in Minneapolis, Minnesota.

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.