Contrasting HL Acquisitions (NASDAQ:LPRO) and LendingClub (NASDAQ:LC)

HL Acquisitions (NASDAQ:LPRO) and LendingClub (NYSE:LC) are both finance companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, risk, valuation, institutional ownership, earnings and profitability.

Insider & Institutional Ownership

19.7% of HL Acquisitions shares are held by institutional investors. Comparatively, 85.6% of LendingClub shares are held by institutional investors. 20.0% of HL Acquisitions shares are held by company insiders. Comparatively, 4.5% of LendingClub shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

HL Acquisitions has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500. Comparatively, LendingClub has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for HL Acquisitions and LendingClub, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HL Acquisitions 0 0 4 0 3.00
LendingClub 0 6 2 0 2.25

HL Acquisitions currently has a consensus price target of $22.00, suggesting a potential downside of 3.93%. LendingClub has a consensus price target of $12.00, suggesting a potential upside of 134.83%. Given LendingClub’s higher probable upside, analysts plainly believe LendingClub is more favorable than HL Acquisitions.

Profitability

This table compares HL Acquisitions and LendingClub’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HL Acquisitions N/A -311.73% -6.62%
LendingClub -22.73% -9.42% -2.79%

Earnings & Valuation

This table compares HL Acquisitions and LendingClub’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HL Acquisitions N/A N/A $2.59 million N/A N/A
LendingClub $758.61 million 0.48 -$30.75 million $0.02 255.50

HL Acquisitions has higher earnings, but lower revenue than LendingClub.

Summary

LendingClub beats HL Acquisitions on 6 of the 11 factors compared between the two stocks.

About HL Acquisitions

Open Lending Corporation provides lending enablement and risk analytics to credit unions, regional banks, and captive finance companies in the United States. It offers Lenders Protection Program, an auto lending enablement platform that allows financial institutions and other auto lenders to model their specific overhead and funding costs, as well as set desired ROA target for their insured portfolio; and features default insurance coverage for near-prime and non-prime automobile loans. The company also provides loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.

About LendingClub

LendingClub Corporation operates an online lending marketplace platform that connects borrowers and investors in the United States. The company's marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, unsecured education and patient installment loans, auto refinance loans, and small business loans. It also enables investors to invest in a range of loans based on term and credit. The company was founded in 2006 and is headquartered in San Francisco, California.

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