LendingClub vs Hilltop Holdings

This page compares LendingClub and Hilltop Holdings, examining business models, financial performance, and market context to help readers understand how the two firms operate. The comparison is presented in neutral terms, focusing on available information and its implications for stakeholders. Educational content, not financial advice.

This page compares LendingClub and Hilltop Holdings, examining business models, financial performance, and market context to help readers understand how the two firms operate. The comparison is presen...

Comparison Snapshot

Key Financial Metrics

LC

Metric

HTH

$2.30B

Market Cap

$2.17B

9.21%

Potential Profit

-4.12%

Buy

Analyst Rating

Hold

Investment Analysis

LendingClub

LC

Pros

Delivered record pre-tax income of $57 million in Q3 2025 with strong profitability metrics including 12.4% ROE and 13.2% ROTCE.
Achieved significant growth with originations up 37% and revenue up 32% year-over-year, indicating strong business expansion.
Initiated a $100 million share repurchase program reflecting balance sheet strength and confidence in long-term earnings power.

Considerations

Has a relatively high beta of 2.49, indicating above-market volatility which may increase investment risk.
Despite recent growth, experienced a 69% aggregate decline in EPS over the preceding three years, suggesting earnings inconsistency.
Currently trades at a P/E ratio of 20.4 which, while justified by growth expectations, places it at a premium valuation level.

Hilltop Holdings

HTH

Pros

Reported a 3.52% year-over-year revenue increase for the last quarter, showing steady top-line growth.
Achieved an 83.87% increase in earnings per share over the last quarter, indicating improved profitability.
Operates across diversified segments—banking, broker-dealer, and mortgage origination, providing revenue and risk diversification.

Considerations

Analysts forecast a potential decline in stock price over the next 12 months with an average target below current levels.
Markets served are primarily regional with PlainsCapital Bank focused mainly in Texas, which may limit growth scope compared to national peers.
Mortgage origination segment is subject to cyclical risks and fluctuations in interest rates that could impact earnings stability.

About The Companies

LendingClub (LC)

LendingClub Corporation (LC) operates an online lending marketplace that connects borrowers with investors and manages loan servicing. The company earns fees from loan origination, servicing and selling loans, plus interest income on retained loan portfolios. Investors should note LendingClub’s performance is sensitive to the credit cycle, underwriting outcomes and interest-rate environments; profitability can fluctuate as loan volumes, default rates and funding costs change. Competition comes from banks, fintech lenders and marketplace platforms, and regulatory or compliance changes can affect operations. With a market capitalisation around $1.9 billion, the stock may appeal to those watching fintech disruption in consumer credit, but it carries higher credit and macroeconomic exposure than many diversified financial firms. This summary is educational only; it is not personal investment advice. Values can rise or fall and past performance does not guarantee future returns. Consider your risk tolerance and do your own research or consult a qualified adviser before investing.

Hilltop Holdings (HTH)

Hilltop Holdings Inc. is a diversified financial holding company based in Texas. It operates through three main business segments, which might offer a degree of balance. The banking segment, through PlainsCapital Bank, provides a range of business and consumer banking services across the state. The broker-dealer arm, Hilltop Securities, offers investment advisory and brokerage services to its clients. Finally, the mortgage origination segment, PrimeLending, operates nationally, originating and servicing a variety of home loans which are then often sold into the secondary market. This structure gives the company exposure to different areas of the financial services industry. As with any investment, the value of shares can go down as well as up, and returns are not guaranteed. This information is for educational purposes and not a recommendation to invest.

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U.S. banks have significantly increased their borrowing from the Fed's emergency lending facility, signaling potential stress in short-term funding markets. This theme focuses on resilient financial institutions and technology providers that can help navigate or benefit from these tightening liquidity conditions.

Published: October 16, 2025

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Comparison Snapshot