LPLA vs. TW, TROW, NDAQ, SNEX, AMTD, ICE, CME, HBAN, ERIE, and BSBR
Should you be buying LPL Financial stock or one of its competitors? The main competitors of LPL Financial include Tradeweb Markets (TW), T. Rowe Price Group (TROW), Nasdaq (NDAQ), StoneX Group (SNEX), TD Ameritrade (AMTD), Intercontinental Exchange (ICE), CME Group (CME), Huntington Bancshares (HBAN), Erie Indemnity (ERIE), and Banco Santander (Brasil) (BSBR). These companies are all part of the "finance" sector.
LPL Financial (NASDAQ:LPLA) and Tradeweb Markets (NASDAQ:TW) are both large-cap finance companies, but which is the better business? We will compare the two companies based on the strength of their profitability, risk, community ranking, institutional ownership, media sentiment, earnings, valuation, dividends and analyst recommendations.
LPL Financial currently has a consensus target price of $276.00, suggesting a potential upside of 3.63%. Tradeweb Markets has a consensus target price of $109.27, suggesting a potential upside of 7.30%. Given Tradeweb Markets' stronger consensus rating and higher probable upside, analysts plainly believe Tradeweb Markets is more favorable than LPL Financial.
95.7% of LPL Financial shares are held by institutional investors. Comparatively, 99.5% of Tradeweb Markets shares are held by institutional investors. 1.3% of LPL Financial shares are held by insiders. Comparatively, 1.9% of Tradeweb Markets shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.5%. Tradeweb Markets pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. LPL Financial pays out 8.8% of its earnings in the form of a dividend. Tradeweb Markets pays out 21.2% 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. LPL Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
Tradeweb Markets has a net margin of 28.44% compared to LPL Financial's net margin of 10.61%. LPL Financial's return on equity of 57.68% beat Tradeweb Markets' return on equity.
LPL Financial received 70 more outperform votes than Tradeweb Markets when rated by MarketBeat users. However, 67.56% of users gave Tradeweb Markets an outperform vote while only 58.34% of users gave LPL Financial an outperform vote.
LPL Financial has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Tradeweb Markets has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500.
In the previous week, Tradeweb Markets had 3 more articles in the media than LPL Financial. MarketBeat recorded 20 mentions for Tradeweb Markets and 17 mentions for LPL Financial. LPL Financial's average media sentiment score of 0.60 beat Tradeweb Markets' score of 0.22 indicating that LPL Financial is being referred to more favorably in the media.
LPL Financial has higher revenue and earnings than Tradeweb Markets. LPL Financial is trading at a lower price-to-earnings ratio than Tradeweb Markets, indicating that it is currently the more affordable of the two stocks.
Summary
Tradeweb Markets beats LPL Financial 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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