Comparing LendingClub Corporation (LC) & Navient Corp (NAVIV)

LendingClub Corporation (NYSE: LC) and Navient Corp (NASDAQ:NAVIV) are both finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Analyst Ratings

This is a summary of recent recommendations for LendingClub Corporation and Navient Corp, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LendingClub Corporation 0 9 7 0 2.44
Navient Corp 0 0 0 0 N/A

LendingClub Corporation presently has a consensus target price of $6.82, suggesting a potential upside of 10.30%. Given LendingClub Corporation’s higher probable upside, equities research analysts clearly believe LendingClub Corporation is more favorable than Navient Corp.

Profitability

This table compares LendingClub Corporation and Navient Corp’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LendingClub Corporation -24.52% -11.97% -2.18%
Navient Corp 31.91% 12.50% 0.38%

Earnings and Valuation

This table compares LendingClub Corporation and Navient Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LendingClub Corporation $511.51 million 4.97 -$123.42 million ($0.30) -20.60
Navient Corp N/A N/A N/A N/A N/A

Navient Corp has higher revenue, but lower earnings than LendingClub Corporation.

Institutional and Insider Ownership

86.9% of LendingClub Corporation shares are owned by institutional investors. 11.4% of LendingClub Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

LendingClub Corporation beats Navient Corp on 5 of the 8 factors compared between the two stocks.

About LendingClub Corporation

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.

About Navient Corp

Navient Corporation provides asset management and business processing services to education, healthcare and government clients at the federal, state and local levels. The Company holds the portfolio of education loans insured or federally guaranteed under the Federal Family Education Loan Program (FFELP). It operates through four segments: FFELP Loans, Private Education Loans, Business Services and Other. It also holds the portfolio of Private Education Loans. It services its own portfolio of education loans, as well as education loans owned by the United States Department of Education (ED), financial institutions and nonprofit education lenders. It also provides business processing services to education-related clients, such as guaranty agencies and colleges and universities. It provides additional business processing services to a range of other clients, including federal agencies, state and local governments, healthcare systems and other healthcare providers and municipalities.

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