LendingClub (NYSE:LC) & goeasy (OTCMKTS:EHMEF) Head to Head Analysis

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

Institutional & Insider Ownership

74.1% of LendingClub shares are held by institutional investors. Comparatively, 23.7% of goeasy shares are held by institutional investors. 2.8% of LendingClub shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for LendingClub and goeasy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LendingClub	0	1	4	0	2.80
goeasy	0	0	0	0	N/A

LendingClub currently has a consensus price target of $11.42, suggesting a potential upside of 23.02%. goeasy has a consensus price target of $167.33, suggesting a potential upside of 23.96%. Given goeasy’s higher possible upside, analysts clearly believe goeasy is more favorable than LendingClub.

Valuation and Earnings

This table compares LendingClub and goeasy’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LendingClub	$864.62 million	1.19	$38.94 million	$0.34	27.29
goeasy	N/A	N/A	N/A	$1.24	108.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LendingClub	4.69%	3.04%	0.43%
goeasy	N/A	N/A	N/A

Summary

LendingClub beats goeasy on 7 of the 10 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 goeasy

goeasy Ltd. provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. It offers unsecured and secured installment loans; home equity secured instalment loans and automotive vehicle financing; and loans to finance the purchase of retail goods, powersports and recreational vehicles, home improvement projects, and healthcare related products and services. The companyleases household furniture, appliances, electronics, and unsecured lending products to retail consumers. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada.