LendingClub vs Marcus Which Is More Reliable?

LendingClub and Marcus stocks are both popular choices for investors looking to capitalize on the burgeoning fintech industry. LendingClub, founded in 2006, is a peer-to-peer lending platform that connects borrowers with investors. On the other hand, Marcus, launched by Goldman Sachs in 2016, offers personal loans and high-yield savings accounts. Both companies have experienced growth in recent years, but each has its own unique strengths and weaknesses that investors should consider before making a decision.

LendingClub or Marcus?

When comparing LendingClub and Marcus, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between LendingClub and Marcus.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. LendingClub has a dividend yield of -%, while Marcus has a dividend yield of 1.27%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LendingClub reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Marcus reports a 5-year dividend growth of -13.65% year and a payout ratio of -86.08%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with LendingClub P/E ratio at 33.33 and Marcus's P/E ratio at -69.31. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LendingClub P/B ratio is 1.28 while Marcus's P/B ratio is 1.53.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LendingClub has seen a 5-year revenue growth of 0.13%, while Marcus's is -0.29%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LendingClub's ROE at 4.02% and Marcus's ROE at -2.22%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $15.39 for LendingClub and $21.68 for Marcus. Over the past year, LendingClub's prices ranged from $6.56 to $17.15, with a yearly change of 161.43%. Marcus's prices fluctuated between $9.56 and $23.16, with a yearly change of 142.26%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.