LendingClub Corp (LC)vsRoyal Bank of Canada (RY)
LC
LendingClub Corp
$19.21
0.00%
FINANCIAL SERVICES · Cap: $2.22B
RY
Royal Bank of Canada
$205.90
-0.04%
FINANCIAL SERVICES · Cap: $291.55B
Smart Verdict
WallStSmart Research — data-driven comparison
Royal Bank of Canada generates 4794% more annual revenue ($67.15B vs $1.37B). RY leads profitability with a 33.9% profit margin vs 12.8%. LC trades at a lower P/E of 12.8x. LC earns a higher WallStSmart Score of 68/100 (B-).
LC
Strong Buy68
out of 100
Grade: B-
RY
Buy63
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 340.0% YoY
Conservative balance sheet, low leverage
Attractively priced relative to earnings
Strong operational efficiency at 20.0%
Mega-cap, among the largest globally
Keeps 34 of every $100 in revenue as profit
Strong operational efficiency at 46.4%
Reasonable price relative to book value
Areas to Watch
Negative free cash flow — burning cash
Distress zone — elevated risk
Expensive relative to growth rate
Negative free cash flow — burning cash
Distress zone — elevated risk
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : LC
The strongest argument for LC centers on Price/Book, EPS Growth, Debt/Equity. Revenue growth of 12.5% demonstrates continued momentum.
Bull Case : RY
The strongest argument for RY centers on Market Cap, Profit Margin, Operating Margin. Profitability is solid with margins at 33.9% and operating margin at 46.4%.
Bear Case : LC
The primary concerns for LC are Free Cash Flow, Altman Z-Score.
Bear Case : RY
The primary concerns for RY are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 2.88 is elevated, increasing financial risk.
Key Dynamics to Monitor
LC profiles as a value stock while RY is a mature play — different risk/reward profiles.
LC carries more volatility with a beta of 1.97 — expect wider price swings.
LC is growing revenue faster at 12.5% — sustainability is the question.
LC generates stronger free cash flow (-645M), providing more financial flexibility.
Bottom Line
LC scores higher overall (68/100 vs 63/100) and 12.5% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
LendingClub Corp
FINANCIAL SERVICES · BANKS - REGIONAL · USA
LendingClub Corporation, is a banking holding company for LendingClub Bank, a National Association that offers a range of financial products and services through a technology-driven platform in the United States. The company is headquartered in San Francisco, California.
Royal Bank of Canada
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Royal Bank of Canada is a globally diversified financial services company. The company is headquartered in Toronto, Canada.
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