Reviewing LendingClub (NYSE:LC) & AEON Financial Service (OTCMKTS:AEOJF)

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

Valuation & Earnings

This table compares LendingClub and AEON Financial Service”s 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
AEON Financial Service	N/A	N/A	N/A	$143.79	0.06

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

Analyst Ratings

This is a summary of current ratings and price targets for LendingClub and AEON Financial Service, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LendingClub	0	3	6	0	2.67
AEON Financial Service	0	0	0	0	0.00

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

Profitability

This table compares LendingClub and AEON Financial Service’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%
AEON Financial Service	N/A	N/A	N/A

Insider and Institutional Ownership

74.1% of LendingClub shares are held by institutional investors. Comparatively, 23.5% of AEON Financial Service shares are held by institutional investors. 3.2% of LendingClub shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

LendingClub beats AEON Financial Service 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 AEON Financial Service

AEON Financial Service Co., Ltd., through its subsidiaries, provides various financial services in Japan. The company operates Retail, Solutions, China Area, Mekong Area, and Malay Area segments. It is involved in banking, short-term insurance, bank agency, ATM, housing and other loans, property leases, installment sales, life and non-life insurance agency, life insurance sales, loan purchases, credit card purchase contracts, collection and payment agency, credit card, and electronic money businesses, as well as bank and business management activities. In addition, the company engages in the management, collection, and purchase of specified monetary claims, and backup servicing businesses. AEON Financial Service Co., Ltd. was incorporated in 1981 and is based in Tokyo, Japan.