Critical Comparison: LendingClub (NYSE:LC) & goeasy (OTCMKTS:EHMEF)

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

Institutional and Insider Ownership

23.7% of goeasy shares are held by institutional investors. Comparatively, 74.1% of LendingClub shares are held by institutional investors. 2.8% of LendingClub shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares goeasy and LendingClub’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
goeasy	N/A	N/A	N/A	$1.24	106.43
LendingClub	$864.62 million	0.97	$38.94 million	$0.36	20.89

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.

Analyst Ratings

This is a summary of current ratings and target prices for goeasy and LendingClub, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
goeasy	0	0	0	0	N/A
LendingClub	0	0	4	0	3.00

goeasy currently has a consensus price target of $167.33, indicating a potential upside of 26.29%. LendingClub has a consensus price target of $11.30, indicating a potential upside of 49.67%. Given LendingClub’s higher probable upside, analysts plainly believe LendingClub is more favorable than goeasy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
goeasy	N/A	N/A	N/A
LendingClub	4.50%	3.21%	0.45%

Summary

LendingClub beats goeasy on 8 of the 10 factors compared between the two stocks.

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.

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.