LendingClub (NYSE:LC) and Credit Saison (OTCMKTS:CSASF) Head to Head Review

LendingClub (NYSE:LC) and Credit Saison (OTCMKTS:CSASF) are both financial services companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.

Institutional and Insider Ownership

74.1% of LendingClub shares are held by institutional investors. Comparatively, 26.3% of Credit Saison shares are held by institutional investors. 3.2% of LendingClub shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for LendingClub and Credit Saison, as provided by MarketBeat.com.

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

LendingClub presently has a consensus target price of $16.57, indicating a potential downside of 0.71%. Given LendingClub’s stronger consensus rating and higher possible upside, analysts plainly believe LendingClub is more favorable than Credit Saison.

Valuation & Earnings

This table compares LendingClub and Credit Saison”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	2.43	$51.33 million	$0.64	26.08
Credit Saison	N/A	N/A	N/A	C$144.02	0.19

LendingClub has higher revenue and earnings than Credit Saison. Credit Saison 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 Credit Saison’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%
Credit Saison	N/A	N/A	N/A

Summary

LendingClub beats Credit Saison 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 Credit Saison

Credit Saison Co., Ltd. provides leasing, finance, real estate, entertainment, and payment services in Japan and internationally. The company offers credit cards, prepaid and debit cards, smartphone-based services, and information processing services; internet advertisement agency; marketing consulting; temporary staffing; and contracting services. It also engages in the credit guarantee and finance related businesses; real estate business; real estate leasing activities; and digital marketing and asset management services, as well as develops and manages amusement. Further, it involved in the import and sell of lifestyle goods; cleaning, security, and property maintenance services; debt collection; personal loan; life/non-life insurance agency; online ticket system and payment services; digital lending; and sells information security and office disaster prevention related services, etc. The company was formerly known as Seibu Credit Co., Ltd. and changed its name to Credit Saison Co., Ltd. in October 1989. Credit Saison Co., Ltd. was incorporated in 1951 and is headquartered in Tokyo, Japan.