Happen Bank (NASDAQ:HAPN) versus Atlanticus (NASDAQ:ATLC) Head to Head Survey

Happen Bank (NASDAQ:HAPN) and Atlanticus (NASDAQ:ATLC) are both small-cap finance companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Happen Bank and Atlanticus, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Happen Bank	0	1	3	0	2.75
Atlanticus	0	2	5	1	2.88

Happen Bank presently has a consensus price target of $23.33, indicating a potential upside of 50.20%. Atlanticus has a consensus price target of $127.86, indicating a potential upside of 59.97%. Given Atlanticus’ stronger consensus rating and higher probable upside, analysts plainly believe Atlanticus is more favorable than Happen Bank.

Profitability

This table compares Happen Bank and Atlanticus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Happen Bank	20.16%	13.62%	1.71%
Atlanticus	7.65%	27.37%	2.48%

Earnings and Valuation

This table compares Happen Bank and Atlanticus”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Happen Bank	$1.05 billion	1.71	$135.68 million	$1.79	8.68
Atlanticus	$649.94 million	1.89	$122.20 million	$11.35	7.04

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

Volatility & Risk

Happen Bank has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, Atlanticus has a beta of 1.8, suggesting that its share price is 80% more volatile than the S&P 500.

Institutional and Insider Ownership

74.1% of Happen Bank shares are owned by institutional investors. Comparatively, 14.1% of Atlanticus shares are owned by institutional investors. 3.3% of Happen Bank shares are owned by company insiders. Comparatively, 51.0% of Atlanticus shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Atlanticus beats Happen Bank on 10 of the 15 factors compared between the two stocks.

About Happen Bank

Happen Bank, originally founded as LendingClub in 2006, is a digital bank primarily built for high-FICO, high-income borrowers that are actively managing their financial lives. The company offers products to make financial progress both fast and easy. Additionally, the company provides advanced credit underwriting, a proprietary technology platform, and a marketplace bank model intended to drive value for members, loan investors, and shareholders. Happen Bank is headquartered in San Fancisco, California.

About Atlanticus

Atlanticus Holdings Corporation is a financial technology and consumer finance company that provides credit products to consumers, including people who may have limited access to traditional credit. It works with banks, retailers and other partners to offer credit cards, installment loans and point-of-sale financing. The company’s offerings include general-purpose and private-label credit cards, as well as financing for purchases in areas such as healthcare and home improvement. Atlanticus also provides financing solutions through relationships with auto dealers and other businesses.