Reviewing LendingClub (NYSE:LC) & Grenke (OTCMKTS:GKSGF)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LendingClub	$787.01 million	2.22	$51.33 million	$0.64	23.79
Grenke	N/A	N/A	N/A	$4.0881	3.76

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

Profitability

This table compares LendingClub and Grenke’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%
Grenke	N/A	N/A	N/A

Institutional and Insider Ownership

74.1% of LendingClub shares are owned by institutional investors. Comparatively, 28.5% of Grenke shares are owned by institutional investors. 3.3% of LendingClub shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LendingClub and Grenke, as reported by MarketBeat.com.

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

LendingClub currently has a consensus price target of $16.5714, suggesting a potential upside of 8.84%. Given LendingClub’s stronger consensus rating and higher probable upside, equities analysts plainly believe LendingClub is more favorable than Grenke.

Summary

LendingClub beats Grenke 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 Grenke

Grenke AG, together with its subsidiaries, provides financial services to small and medium-sized (SME) enterprises in Germany, France, Italy, and internationally. It operates through three segments: Leasing, Banking, and Factoring. The company is involved in the leasing activities, such as financing to commercial lessees, rental, service, protection, and maintenance offerings, as well as sale of used equipment; and small-ticket leasing of IT products, such as PCs, notebooks, servers, monitors, software, and other peripheral equipment; leasing office communication products, that includes telecommunication and copier equipment, as well as medical technology products, small machinery and systems, and security devices; and leasing green economy objects, such as wallboxes, photovoltaic systems, and eBikes. It also provides banking products and services, such as fixed deposits to private and business customers through its website; financing services to business start-ups, as well as development loans to SMEs and self-employed professionals; and small-ticket factoring services. The company was formerly known as GrenkeLeasing AG and changed its name to Grenke AG in May 2016. Grenke AG was founded in 1978 and is headquartered in Baden-Baden, Germany.