Litigation Capital Management (LIT) Competitors

Litigation Capital Management (LON:LIT) and Funding Circle (LON:FCH) are both small-cap financial services companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, valuation, profitability, dividends, earnings, community ranking and media sentiment.

Which has preferable valuation and earnings, LIT or FCH?

Litigation Capital Management has higher earnings, but lower revenue than Funding Circle. Funding Circle is trading at a lower price-to-earnings ratio than Litigation Capital Management, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Litigation Capital Management	£99.37M	1.19	£12.71M	£0.06	1,916.67
Funding Circle	£187.60M	2.19	-£33M	£1.39	94.60

Does the MarketBeat Community favor LIT or FCH?

Funding Circle received 1 more outperform votes than Litigation Capital Management when rated by MarketBeat users. However, 82.14% of users gave Litigation Capital Management an outperform vote while only 64.86% of users gave Funding Circle an outperform vote.

Company	Underperform	Outperform
Litigation Capital Management	Outperform Votes 23 82.14%	Underperform Votes 5 17.86%
Funding Circle	Outperform Votes 24 64.86%	Underperform Votes 13 35.14%

Does the media favor LIT or FCH?

In the previous week, Funding Circle had 1 more articles in the media than Litigation Capital Management. MarketBeat recorded 1 mentions for Funding Circle and 0 mentions for Litigation Capital Management. Funding Circle's average media sentiment score of 1.11 beat Litigation Capital Management's score of 0.00 indicating that Funding Circle is being referred to more favorably in the news media.

Company	Overall Sentiment
Litigation Capital Management	Neutral
Funding Circle	Positive

Is LIT or FCH more profitable?

Litigation Capital Management has a net margin of 12.80% compared to Funding Circle's net margin of -17.43%. Litigation Capital Management's return on equity of 6.83% beat Funding Circle's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Litigation Capital Management	12.80%	6.83%	8.32%
Funding Circle	-17.43%	-13.38%	-3.89%

Do institutionals & insiders believe in LIT or FCH?

23.3% of Litigation Capital Management shares are held by institutional investors. Comparatively, 68.0% of Funding Circle shares are held by institutional investors. 19.5% of Litigation Capital Management shares are held by insiders. Comparatively, 35.2% of Funding Circle shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Which has more risk and volatility, LIT or FCH?

Litigation Capital Management has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500. Comparatively, Funding Circle has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Summary

Funding Circle beats Litigation Capital Management on 9 of the 15 factors compared between the two stocks.