LC
LendingClub Corporation
Financial - Credit Services
Market Cap$1.96B
5Y Perf.+218.9%
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Stock Comparison
LC vs PFSI
Revenue, margins, valuation, and 5-year total return — side by side.
PFSI
PennyMac Financial Services, Inc.
Financial - Mortgages
Market Cap$4.54B
5Y Perf.+158.9%
LC vs PFSI — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | LC | PFSI |
|---|---|---|
| Industry | Financial - Credit Services | Financial - Mortgages |
| Market Cap | $1.96B | $4.54B |
| Revenue (TTM) | $1.33B | $4.36B |
| Net Income (TTM) | $136M | $507M |
| Gross Margin | 64.7% | 91.4% |
| Operating Margin | 25.0% | 34.6% |
| Forward P/E | 9.8x | 7.0x |
| Total Debt | $16M | $23.06B |
| Cash & Equiv. | $918M | $302M |
LC vs PFSI — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
LC
PFSI
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| LendingClub Corpora… (LC) | 100 | 318.9 | +218.9% |
| PennyMac Financial … (PFSI) | 100 | 258.9 | +158.9% |
Price return only. Dividends and distributions are not included.
Quick Verdict: LC vs PFSI
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: PFSI leads in 4 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. LendingClub Corporation is the stronger pick specifically for profitability and margin quality and recent price momentum and sentiment. As sector peers, any of these can serve as alternatives in the same allocation.
LC
LendingClub Corporation
The Banking Pick
LC is the clearest fit if your priority is sleep-well-at-night.
- Lower volatility, beta 2.36, Low D/E 1.1%, current ratio 466.38x
- Efficiency ratio 0.4% vs PFSI's 0.6% (lower = leaner)
- +70.6% vs PFSI's -8.0%
Best for: sleep-well-at-night
PFSI
PennyMac Financial Services, Inc.
The Banking Pick
PFSI carries the broadest edge in this set and is the clearest fit for income & stability and growth exposure.
- Dividend streak 2 yrs, beta 0.93, yield 1.3%
- Rev growth 173.8%, EPS growth 59.2%
- 6.2% 10Y total return vs LC's -51.9%
Best for: income & stability and growth exposure
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | PFSI | 173.8% NII/revenue growth vs LC's 15.0% |
| Value | PFSI | Lower P/E (7.0x vs 9.8x) |
| Quality / Margins | LC | Efficiency ratio 0.4% vs PFSI's 0.6% (lower = leaner) |
| Stability / Safety | PFSI | Beta 0.93 vs LC's 2.36 |
| Dividends | PFSI | 1.3% yield; 2-year raise streak; the other pay no meaningful dividend |
| Momentum (1Y) | LC | +70.6% vs PFSI's -8.0% |
| Efficiency (ROA) | LC | Efficiency ratio 0.4% vs PFSI's 0.6% |
LC vs PFSI — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
LC vs PFSI — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLPFSILAGGINGLC
LCLendingClub Corporati…
2leads
PFSIPennyMac Financial Se…
3leads
6 Total Categories
CATEGORYLEADERvs LCMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
PFSI4/5
Valuation MetricsMultiples, price ratios, and targets
PFSI4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
LC5/9
Total Returns1Y, 3Y, 5Y total returns with dividends
LC4/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
PFSI1/1
Income & Cash Flow (Last 12 Months)
PFSI leads this category, winning 4 of 5 comparable metrics.
Income & Cash Flow (Last 12 Months)
PFSI is the larger business by revenue, generating $4.4B annually — 3.3x LC's $1.3B. Profitability is closely matched — net margins range from 11.5% (PFSI) to 10.2% (LC).
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| RevenueTrailing 12 months | $1.3B | $4.4B |
| EBITDAEarnings before interest/tax | $287M | $1.0B |
| Net IncomeAfter-tax profit | $136M | $507M |
| Free Cash FlowCash after capex | -$2.9B | -$3.8B |
| Gross MarginGross profit ÷ Revenue | +64.7% | +91.4% |
| Operating MarginEBIT ÷ Revenue | +25.0% | +34.6% |
| Net MarginNet income ÷ Revenue | +10.2% | +11.5% |
| FCF MarginFCF ÷ Revenue | -2.1% | -32.4% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +3.2% | +7.7% |
PFSI leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
PFSI leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 9.3x trailing earnings, PFSI trades at a 37% valuation discount to LC's 14.8x P/E. On an enterprise value basis, LC's 2.7x EV/EBITDA is more attractive than PFSI's 18.1x.
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| Market CapShares × price | $2.0B | $4.5B |
| Enterprise ValueMkt cap + debt − cash | $1.1B | $27.3B |
| Trailing P/EPrice ÷ TTM EPS | 14.83x | 9.35x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.77x | 7.04x |
| PEG RatioP/E ÷ EPS growth rate | — | — |
| EV / EBITDAEnterprise value multiple | 2.68x | 18.05x |
| Price / SalesMarket cap ÷ Revenue | 1.47x | 1.04x |
| Price / BookPrice ÷ Book value/share | 1.35x | 1.09x |
| Price / FCFMarket cap ÷ FCF | — | — |
PFSI leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
LC leads this category, winning 5 of 9 comparable metrics.
Profitability & Efficiency
PFSI delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $9 for LC. LC carries lower financial leverage with a 0.01x debt-to-equity ratio, signaling a more conservative balance sheet compared to PFSI's 5.35x. On the Piotroski fundamental quality scale (0–9), LC scores 6/9 vs PFSI's 4/9, reflecting solid financial health.
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| ROE (TTM)Return on equity | +9.5% | +12.0% |
| ROA (TTM)Return on assets | +1.2% | +1.8% |
| ROICReturn on invested capital | +17.3% | +4.4% |
| ROCEReturn on capital employed | +3.3% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 4 |
| Debt / EquityFinancial leverage | 0.01x | 5.35x |
| Net DebtTotal debt minus cash | -$902M | $22.8B |
| Cash & Equiv.Liquid assets | $918M | $302M |
| Total DebtShort + long-term debt | $16M | $23.1B |
| Interest CoverageEBIT ÷ Interest expense | 0.67x | 0.96x |
LC leads this category, winning 5 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
LC leads this category, winning 4 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in PFSI five years ago would be worth $15,907 today (with dividends reinvested), compared to $12,082 for LC. Over the past 12 months, LC leads with a +70.6% total return vs PFSI's -8.0%. The 3-year compound annual growth rate (CAGR) favors LC at 35.4% vs PFSI's 16.0% — a key indicator of consistent wealth creation.
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| YTD ReturnYear-to-date | -10.8% | -33.7% |
| 1-Year ReturnPast 12 months | +70.6% | -8.0% |
| 3-Year ReturnCumulative with dividends | +148.3% | +56.3% |
| 5-Year ReturnCumulative with dividends | +20.8% | +59.1% |
| 10-Year ReturnCumulative with dividends | -51.9% | +624.6% |
| CAGR (3Y)Annualised 3-year return | +35.4% | +16.0% |
LC leads this category, winning 4 of 6 comparable metrics.
Risk & Volatility
Evenly matched — LC and PFSI each lead in 1 of 2 comparable metrics.
Risk & Volatility
PFSI is the less volatile stock with a 0.93 beta — it tends to amplify market swings less than LC's 2.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. LC currently trades 78.7% from its 52-week high vs PFSI's 54.2% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 2.36x | 0.93x |
| 52-Week HighHighest price in past year | $21.67 | $160.36 |
| 52-Week LowLowest price in past year | $9.70 | $82.67 |
| % of 52W HighCurrent price vs 52-week peak | +78.7% | +54.2% |
| RSI (14)Momentum oscillator 0–100 | 57.5 | 41.5 |
| Avg Volume (50D)Average daily shares traded | 2.1M | 609K |
Evenly matched — LC and PFSI each lead in 1 of 2 comparable metrics.
Analyst Outlook
PFSI leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates LC as "Buy" and PFSI as "Buy". Consensus price targets imply 64.5% upside for PFSI (target: $143) vs 33.4% for LC (target: $23). PFSI is the only dividend payer here at 1.34% yield — a key consideration for income-focused portfolios.
| Metric | LCLendingClub Corpo… | PFSIPennyMac Financia… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $22.75 | $143.00 |
| # AnalystsCovering analysts | 29 | 20 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | 1 | 2 |
| Dividend / ShareAnnual DPS | — | $1.16 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.1% |
PFSI leads this category, winning 1 of 1 comparable metric.
Key Takeaway
PFSI leads in 3 of 6 categories (Income & Cash Flow, Valuation Metrics). LC leads in 2 (Profitability & Efficiency, Total Returns). 1 tied.
Best OverallPennyMac Financial Services… (PFSI)Leads 3 of 6 categories
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LC vs PFSI: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is LC or PFSI a better buy right now?
For growth investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger pick with 173. 8% revenue growth year-over-year, versus 15. 0% for LendingClub Corporation (LC). PennyMac Financial Services, Inc. (PFSI) offers the better valuation at 9. 3x trailing P/E (7. 0x forward), making it the more compelling value choice. Analysts rate LendingClub Corporation (LC) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LC or PFSI?
On trailing P/E, PennyMac Financial Services, Inc.
(PFSI) is the cheapest at 9. 3x versus LendingClub Corporation at 14. 8x. On forward P/E, PennyMac Financial Services, Inc. is actually cheaper at 7. 0x.
03Which is the better long-term investment — LC or PFSI?
Over the past 5 years, PennyMac Financial Services, Inc.
(PFSI) delivered a total return of +59. 1%, compared to +20. 8% for LendingClub Corporation (LC). Over 10 years, the gap is even starker: PFSI returned +624. 6% versus LC's -51. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LC or PFSI?
By beta (market sensitivity over 5 years), PennyMac Financial Services, Inc.
(PFSI) is the lower-risk stock at 0. 93β versus LendingClub Corporation's 2. 36β — meaning LC is approximately 154% more volatile than PFSI relative to the S&P 500. On balance sheet safety, LendingClub Corporation (LC) carries a lower debt/equity ratio of 1% versus 5% for PennyMac Financial Services, Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — LC or PFSI?
By revenue growth (latest reported year), PennyMac Financial Services, Inc.
(PFSI) is pulling ahead at 173. 8% versus 15. 0% for LendingClub Corporation (LC). On earnings-per-share growth, the picture is similar: LendingClub Corporation grew EPS 155. 6% year-over-year, compared to 59. 2% for PennyMac Financial Services, Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — LC or PFSI?
PennyMac Financial Services, Inc.
(PFSI) is the more profitable company, earning 11. 5% net margin versus 10. 2% for LendingClub Corporation — meaning it keeps 11. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: PFSI leads at 34. 6% versus 25. 0% for LC. At the gross margin level — before operating expenses — PFSI leads at 91. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Is LC or PFSI more undervalued right now?
On forward earnings alone, PennyMac Financial Services, Inc.
(PFSI) trades at 7. 0x forward P/E versus 9. 8x for LendingClub Corporation — 2. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for PFSI: 64. 5% to $143. 00.
08Which pays a better dividend — LC or PFSI?
In this comparison, PFSI (1.
3% yield) pays a dividend. LC does not pay a meaningful dividend and should not be held primarily for income.
09Is LC or PFSI better for a retirement portfolio?
For long-horizon retirement investors, PennyMac Financial Services, Inc.
(PFSI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 93), 1. 3% yield, +624. 6% 10Y return). LendingClub Corporation (LC) carries a higher beta of 2. 36 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (PFSI: +624. 6%, LC: -51. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
10What are the main differences between LC and PFSI?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: LC is a small-cap deep-value stock; PFSI is a small-cap high-growth stock. PFSI pays a dividend while LC does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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Revenue Growth>
%
(LC: 15.0% · PFSI: 173.8%)Net Margin>
%
(LC: 10.2% · PFSI: 11.5%)P/E Ratio<
x
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