LendingClub (NYSE:LC) and Marchex (NASDAQ:MCHX) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.
Profitability
This table compares LendingClub and Marchex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LendingClub | -29.82% | -3.78% | -0.80% |
| Marchex | -3.35% | -3.44% | -2.87% |
Earnings & Valuation
This table compares LendingClub and Marchex’s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LendingClub | $574.54 million | 2.31 | -$153.83 million | ($0.17) | -18.41 |
| Marchex | $90.29 million | 1.21 | -$6.08 million | ($0.14) | -18.71 |
Marchex has lower revenue, but higher earnings than LendingClub. Marchex is trading at a lower price-to-earnings ratio than LendingClub, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
88.1% of LendingClub shares are held by institutional investors. Comparatively, 50.6% of Marchex shares are held by institutional investors. 9.7% of LendingClub shares are held by company insiders. Comparatively, 27.4% of Marchex shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for LendingClub and Marchex, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LendingClub | 0 | 7 | 6 | 0 | 2.46 |
| Marchex | 0 | 0 | 1 | 0 | 3.00 |
LendingClub presently has a consensus target price of $5.39, suggesting a potential upside of 72.09%. Given LendingClub’s higher possible upside, research analysts plainly believe LendingClub is more favorable than Marchex.
Volatility and Risk
LendingClub has a beta of 1.32, suggesting that its share price is 32% more volatile than the S&P 500. Comparatively, Marchex has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Summary
LendingClub beats Marchex on 8 of the 14 factors compared between the two stocks.
About LendingClub
LendingClub Corporation operates an online marketplace platform that connects borrowers and investors in the United States. Its marketplace facilitates various types of loan products for consumers and small businesses, including unsecured personal loans, unsecured education and patient finance loans, auto refinance loans, and unsecured small business loans. The company also provides an opportunity to the investors to invest in a range of loans based on term and credit. LendingClub Corporation was founded in 2006 and is headquartered in San Francisco, California.
About Marchex
Marchex, Inc. operates as a call analytics company. Its products include Marchex Call Analytics, an analytics technology platform that provides data and insights to measure the performance of mobile, online, and offline advertising for advertisers and small business resellers; and Marchex Speech Analytics delivers actionable operational and advertising insights of inbound calls from consumer's interactions. The company also provides Marchex Omnichannel Analytics Cloud products, such as Marchex Search Analytics, a product for search marketers that drive phone calls from search campaigns; Marchex Display and Video Analytics, a product for marketers that buy digital display advertising; Marchex Site Analytics; and Marchex Social Analytics. It offers Marchex Audience Targeting leverages call data and can automatically build audience segments for display and social media platforms; and Marchex Call Marketplace, a mobile advertising network for businesses that depend on inbound phone calls to drive sales, as well as offer advertisers ad placements across various mobile and online media sources to deliver qualified calls to their businesses. The company also provides Local Leads platform, a service advertising solution for small business resellers, such as Yellow Pages providers and vertical marketing service providers to sell call advertising, search marketing, and other lead generation products through their existing sales channels to small business advertisers. In addition, it offers lead services, including pay-for-call, search marketing, and ad creation, as well as include features, such as call tracking, geo-targeting, campaign management, reporting, and analytics. The company offers its services through direct sales, reseller partnerships, and referral agreements and technology integration partners worldwide. Marchex, Inc. was founded in 2003 and is headquartered in Seattle, Washington.
Receive News & Ratings for LendingClub Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LendingClub and related companies with MarketBeat.com's FREE daily email newsletter.
https://ift.tt/2qiF3UF
0 Comments