LendingTree vs LendingClub Which Performs Better?

LendingTree and LendingClub are two prominent players in the financial technology sector, offering services related to personal loans, mortgages, and other forms of credit. While LendingTree operates as a platform for borrowers to compare loan offers from several lenders, LendingClub connects investors with individuals seeking loans. Both companies have experienced fluctuations in their stock prices in recent years, with LendingClub facing regulatory challenges and LendingTree expanding its offerings through strategic acquisitions. Investors should carefully evaluate the financial health and growth potential of both companies before making investment decisions.

LendingTree or LendingClub?

When comparing LendingTree and LendingClub, 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 LendingTree and LendingClub.

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. LendingTree has a dividend yield of -%, while LendingClub has a dividend yield of -%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. LendingTree reports a 5-year dividend growth of 0.00% year and a payout ratio of -4.64%. On the other hand, LendingClub reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 LendingTree P/E ratio at -14.33 and LendingClub's P/E ratio at 34.89. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. LendingTree P/B ratio is 5.55 while LendingClub's P/B ratio is 1.34.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, LendingTree has seen a 5-year revenue growth of -0.04%, while LendingClub's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with LendingTree's ROE at -29.44% and LendingClub's ROE at 4.02%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $37.48 for LendingTree and $15.66 for LendingClub. Over the past year, LendingTree's prices ranged from $21.96 to $62.49, with a yearly change of 184.56%. LendingClub's prices fluctuated between $6.56 and $17.15, with a yearly change of 161.43%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.