LendingClub Corporation (LC) versus Cash America International (CSH) Critical Review

LendingClub Corporation (NYSE: LC) and Cash America International (NYSE:CSH) are both small-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.

Earnings & Valuation

This table compares LendingClub Corporation and Cash America International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
LendingClub Corporation $495.47 million 3.45 -$145.96 million ($0.23) -17.91
Cash America International N/A N/A N/A $1.18 35.76

Cash America International has higher revenue, but lower earnings than LendingClub Corporation. LendingClub Corporation is trading at a lower price-to-earnings ratio than Cash America International, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

LendingClub Corporation has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, Cash America International has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares LendingClub Corporation and Cash America International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LendingClub Corporation -17.19% -9.06% -1.73%
Cash America International 0.87% 0.86% 0.64%

Dividends

Cash America International pays an annual dividend of $0.32 per share and has a dividend yield of 0.8%. LendingClub Corporation does not pay a dividend. Cash America International pays out 27.1% of its earnings in the form of a dividend. Cash America International has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

88.3% of LendingClub Corporation shares are owned by institutional investors. 11.4% of LendingClub Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for LendingClub Corporation and Cash America International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingClub Corporation 0 6 9 0 2.60
Cash America International 0 0 0 0 N/A

LendingClub Corporation presently has a consensus price target of $6.95, suggesting a potential upside of 68.60%. Given LendingClub Corporation’s higher probable upside, equities analysts clearly believe LendingClub Corporation is more favorable than Cash America International.

Summary

LendingClub Corporation beats Cash America International on 7 of the 13 factors compared between the two stocks.

About LendingClub Corporation

LendingClub Corporation provides online marketplace to connect borrowers and investors. Consumers and small business owners borrow through Lending Club. Investors use Lending Club to earn risk-adjusted returns from an asset class that has been closed to many investors and only available on a limited basis to large institutional investors. Its technology automates aspects of operations, including the borrower application process, data gathering, credit decisioning and scoring, loan funding, investing and servicing, regulatory compliance and fraud detection. Its platform offers analytical tools and data to enable investors to make decisions and assess their portfolios. Its technology platform has allowed it to expand its offerings from personal loans to include small business loans, and to expand investor classes from individuals to institutions and create various investment vehicles.

About Cash America International

Cash America International, Inc. provides specialty financial services to individuals through its storefront lending and franchised check cashing locations. The Company offers secured non-recourse loans, referred to as pawn loans, as its primary line of business. The Company is also engaged in originating, arranging, guaranteeing or purchasing consumer loans in some of its locations. The Company also offers check cashing and other ancillary products and services, including money orders, wire transfers and auto insurance. The Company’s franchised check cashing business offers check cashing services through its franchised check cashing centers. The Company provides its services in the United States under the names Cash America Pawn, SuperPawn, Cash America Payday Advance, Cashland and Mr. Payroll. The Company is engaged in pawn lending activities, merchandise disposition activities, consumer loan activities and check cashing and other financial services.

Receive News & Ratings for LendingClub Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LendingClub Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply