LPLA vs. TROW, TW, NDAQ, SNEX, AMTD, CME, ICE, WRB, BSBR, and HBAN
Should you be buying LPL Financial stock or one of its competitors? The main competitors of LPL Financial include T. Rowe Price Group (TROW), Tradeweb Markets (TW), Nasdaq (NDAQ), StoneX Group (SNEX), TD Ameritrade (AMTD), CME Group (CME), Intercontinental Exchange (ICE), W. R. Berkley (WRB), Banco Santander (Brasil) (BSBR), and Huntington Bancshares (HBAN). These companies are all part of the "finance" sector.
LPL Financial (NASDAQ:LPLA) and T. Rowe Price Group (NASDAQ:TROW) are both large-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, media sentiment, profitability, institutional ownership, community ranking and valuation.
LPL Financial has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, T. Rowe Price Group has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.
LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. T. Rowe Price Group pays an annual dividend of $4.96 per share and has a dividend yield of 4.2%. LPL Financial pays out 9.1% of its earnings in the form of a dividend. T. Rowe Price Group pays out 58.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
T. Rowe Price Group has a net margin of 29.09% compared to LPL Financial's net margin of 9.71%. LPL Financial's return on equity of 55.22% beat T. Rowe Price Group's return on equity.
T. Rowe Price Group received 121 more outperform votes than LPL Financial when rated by MarketBeat users. However, 58.32% of users gave LPL Financial an outperform vote while only 52.52% of users gave T. Rowe Price Group an outperform vote.
LPL Financial currently has a consensus price target of $276.20, indicating a potential downside of 2.13%. T. Rowe Price Group has a consensus price target of $112.10, indicating a potential downside of 4.18%. Given LPL Financial's stronger consensus rating and higher possible upside, research analysts plainly believe LPL Financial is more favorable than T. Rowe Price Group.
T. Rowe Price Group has lower revenue, but higher earnings than LPL Financial. T. Rowe Price Group is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.
In the previous week, LPL Financial had 27 more articles in the media than T. Rowe Price Group. MarketBeat recorded 38 mentions for LPL Financial and 11 mentions for T. Rowe Price Group. T. Rowe Price Group's average media sentiment score of 1.48 beat LPL Financial's score of 0.22 indicating that T. Rowe Price Group is being referred to more favorably in the news media.
95.7% of LPL Financial shares are held by institutional investors. Comparatively, 73.4% of T. Rowe Price Group shares are held by institutional investors. 1.0% of LPL Financial shares are held by insiders. Comparatively, 2.0% of T. Rowe Price Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
LPL Financial beats T. Rowe Price Group on 11 of the 20 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding LPLA and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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