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

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. LendingClub Corporation has raised its dividend for 2 consecutive years.

Analyst Recommendations

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

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

LendingClub Corporation has a consensus price target of $6.95, indicating a potential upside of 63.45%. Given LendingClub Corporation’s higher probable upside, analysts clearly believe LendingClub Corporation is more favorable than Cash America International.

Profitability

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

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

Valuation and Earnings

This table compares Cash America International and LendingClub Corporation’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Cash America International N/A N/A N/A $1.18 35.76
LendingClub Corporation $495.47 million 3.56 -$145.96 million ($0.23) -18.48

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.

Risk & Volatility

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

Insider & Institutional Ownership

88.3% of LendingClub Corporation shares are owned by institutional investors. 11.4% of LendingClub Corporation shares are owned 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.

Summary

LendingClub Corporation beats Cash America International on 8 of the 13 factors compared between the two stocks.

Cash America International Company Profile

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.

LendingClub Corporation Company Profile

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.

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