Financial Comparison: Consumer Portfolio Services (NASDAQ:CPSS) and Lendingclub (NASDAQ:HAPN)

Lendingclub (NASDAQ:HAPN) and Consumer Portfolio Services (NASDAQ:CPSS) are both finance companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Profitability

This table compares Lendingclub and Consumer Portfolio Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lendingclub	N/A	N/A	N/A
Consumer Portfolio Services	N/A	N/A	N/A

Earnings & Valuation

This table compares Lendingclub and Consumer Portfolio Services”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lendingclub	N/A	N/A	N/A	$1.66	8.63
Consumer Portfolio Services	N/A	N/A	N/A	$1.02	9.36

Lendingclub is trading at a lower price-to-earnings ratio than Consumer Portfolio Services, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Lendingclub and Consumer Portfolio Services, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lendingclub	0	1	2	0	2.67
Consumer Portfolio Services	0	1	0	0	2.00

Lendingclub presently has a consensus target price of $25.00, indicating a potential upside of 74.58%. Given Lendingclub’s stronger consensus rating and higher possible upside, analysts clearly believe Lendingclub is more favorable than Consumer Portfolio Services.

Insider & Institutional Ownership

74.1% of Lendingclub shares are owned by institutional investors. Comparatively, 47.6% of Consumer Portfolio Services shares are owned by institutional investors. 3.3% of Lendingclub shares are owned by company insiders. Comparatively, 63.8% of Consumer Portfolio Services shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Lendingclub beats Consumer Portfolio Services on 5 of the 6 factors compared between the two stocks.

About Lendingclub

LendingClub Corporation, operates as a bank holding company for LendingClub Bank, National Association that provides range of financial products and services through a technology-driven platform in the United States. The company provides commercial and industrial, commercial real estate, small business, and equipment loans, as well as leases equipment; and unsecured personal and auto, patient finance, and education finance loans. It also operates an online lending marketplace platform that connects borrowers and investors. LendingClub Corporation was incorporated in 2006 and is headquartered in San Francisco, California.

About Consumer Portfolio Services

Consumer Portfolio Services, Inc. operates as a specialty finance company in the United States. It is involved in the purchase and service of retail automobile contracts originated by franchised automobile dealers and select independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. The company, through its automobile contract purchases, offers indirect financing to the customers of dealers with limited credit histories or past credit problems. It also serves as an alternative source of financing for dealers, facilitating sales to customers who are not able to obtain financing from commercial banks, credit unions, and the captive finance companies. In addition, the company acquires installment purchase contracts in merger and acquisition transactions; purchases immaterial amounts of vehicle purchase money loans from non-affiliated lenders. It services its automobile contracts through its branches in California, Nevada, Virginia, Florida, and Illinois. The company was incorporated in 1991 and is based in Las Vegas, Nevada.