LendingClub (NYSE:LC) & Mitsubishi HC Capital (OTCMKTS:MIUFY) Critical Contrast

LendingClub (NYSE:LC) and Mitsubishi HC Capital (OTCMKTS:MIUFY) are both financial services companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, profitability, valuation, institutional ownership, risk, earnings and analyst recommendations.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LendingClub	$787.01 million	2.25	$51.33 million	$0.64	24.16
Mitsubishi HC Capital	N/A	N/A	N/A	$88.4546	0.17

LendingClub has higher revenue and earnings than Mitsubishi HC Capital. Mitsubishi HC Capital is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.1% of LendingClub shares are owned by institutional investors. 3.3% of LendingClub shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for LendingClub and Mitsubishi HC Capital, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LendingClub	0	3	6	0	2.67
Mitsubishi HC Capital	0	0	0	0	0.00

LendingClub currently has a consensus target price of $16.5714, suggesting a potential upside of 7.19%. Given LendingClub’s stronger consensus rating and higher probable upside, research analysts clearly believe LendingClub is more favorable than Mitsubishi HC Capital.

Profitability

This table compares LendingClub and Mitsubishi HC Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LendingClub	8.36%	5.66%	0.72%
Mitsubishi HC Capital	N/A	N/A	N/A

Summary

LendingClub beats Mitsubishi HC Capital on 10 of the 11 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 Mitsubishi HC Capital

Mitsubishi HC Capital Inc., together with its subsidiaries, engages in the lease, installment sale, and other financing activities in Japan, Europe, the Americas, China, and ASEAN region. The company operates through Customer Solutions, Global Business, Environment & Energy, Aviation, Logistics, Real Estate, and Mobility segments. The company engages in the finance solution business; leasing, management, and development of real estate; rental and leasing; auto leasing services; investment in environment and energy-related companies; renewable energy and infrastructure business; and renewable energy business. In addition, it offers aircraft leasing and aircraft engine leasing; marine container and railway freight car leasing; and asset management services. Mitsubishi HC Capital Inc. was incorporated in 1971 and is based in Chiyoda, Japan.