LendingClub (NYSE: LC) and WNS (NYSE:WNS) are both finance companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.
Risk & Volatility
LendingClub has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, WNS has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500.
Insider & Institutional Ownership
84.1% of LendingClub shares are owned by institutional investors. Comparatively, 86.4% of WNS shares are owned by institutional investors. 4.0% of LendingClub shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and price targets for LendingClub and WNS, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LendingClub currently has a consensus target price of $5.69, indicating a potential upside of 50.19%. WNS has a consensus target price of $49.00, indicating a potential downside of 7.60%. Given LendingClub’s higher probable upside, research analysts plainly believe LendingClub is more favorable than WNS.
Earnings and Valuation
This table compares LendingClub and WNS’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||2.77||-$153.83 million||($0.17)||-22.29|
|WNS||$758.00 million||3.53||$86.43 million||$1.81||29.30|
WNS has higher revenue and earnings than LendingClub. LendingClub is trading at a lower price-to-earnings ratio than WNS, indicating that it is currently the more affordable of the two stocks.
This table compares LendingClub and WNS’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
WNS beats LendingClub on 12 of the 15 factors compared between the two stocks.
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.
WNS (Holdings) Limited, a business process management company, provides data, voice, analytical, and business transformation services worldwide. It operates through two segments, WNS Global BPM and WNS Auto Claims BPM. The company offers industry-specific services to clients primarily in the insurance; travel and leisure; diversified businesses, including manufacturing, retail, consumer packaged goods, media and entertainment, and telecommunications; utilities; consulting and professional services; healthcare; banking and financial services; and shipping and logistics industries. It also provides a range of services in the areas of customer interaction, finance and accounting, research and analytics, technology, legal, and human resources outsourcing services across various industries. In addition, the company offers transformation services designed to help its clients to modify their business processes to enhance productivity, and manage changes in the business environment and leverage business knowledge to increase market competitiveness. Further, it provides claims handling and repair management services for automobile repairs through a network of third party repair centers; and a suite of accident management services, such as credit hire and credit repair. WNS (Holdings) Limited was founded in 1996 and is based in Mumbai, India.
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