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 companies based on the strength of their media sentiment, analyst recommendations, profitability, earnings, dividends, valuation, risk, institutional ownership and community ranking.

Do institutionals and insiders believe in LIT or FCH?

23.3% of Litigation Capital Management shares are owned by institutional investors. Comparatively, 68.0% of Funding Circle shares are owned by institutional investors. 19.5% of Litigation Capital Management shares are owned by company insiders. Comparatively, 35.2% of Funding Circle shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Which has stronger valuation & earnings, LIT or FCH?

Litigation Capital Management has higher revenue and earnings 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	£204.77M	0.51	£26.20M	£5.83	7.90
Funding Circle	£27.57M	11.80	-£5.47M	-£1.84	-59.02

Do analysts recommend LIT or FCH?

Litigation Capital Management currently has a consensus price target of GBX 182, suggesting a potential upside of 294.79%. Given Litigation Capital Management's stronger consensus rating and higher possible upside, research analysts plainly believe Litigation Capital Management is more favorable than Funding Circle.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Litigation Capital Management	0 Sell rating(s)	0 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	3.00
Funding Circle	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Which has more volatility and risk, LIT or FCH?

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

Does the media prefer LIT or FCH?

In the previous week, Funding Circle had 2 more articles in the media than Litigation Capital Management. MarketBeat recorded 2 mentions for Funding Circle and 0 mentions for Litigation Capital Management. Funding Circle's average media sentiment score of 1.84 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	Very 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 -19.85%. Litigation Capital Management's return on equity of 6.79% beat Funding Circle's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Litigation Capital Management	12.80%	6.79%	8.32%
Funding Circle	-19.85%	-13.75%	-3.89%

Does the MarketBeat Community favor LIT or FCH?

Litigation Capital Management received 2 more outperform votes than Funding Circle when rated by MarketBeat users. Likewise, 83.87% 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 26 83.87%	Underperform Votes 5 16.13%
Funding Circle	Outperform Votes 24 64.86%	Underperform Votes 13 35.14%

Summary

Litigation Capital Management beats Funding Circle on 12 of the 18 factors compared between the two stocks.