LPLA vs. TW, TROW, NDAQ, SNEX, AMTD, CME, ICE, BSBR, ERIE, and HBAN
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), CME Group (CME), Intercontinental Exchange (ICE), Banco Santander (Brasil) (BSBR), Erie Indemnity (ERIE), and Huntington Bancshares (HBAN). 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 superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership, community ranking, earnings and media sentiment.
Tradeweb Markets has a net margin of 27.26% 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 has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Tradeweb Markets has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500.
In the previous week, LPL Financial had 16 more articles in the media than Tradeweb Markets. MarketBeat recorded 17 mentions for LPL Financial and 1 mentions for Tradeweb Markets. Tradeweb Markets' average media sentiment score of 1.00 beat LPL Financial's score of 0.61 indicating that Tradeweb Markets is being referred to more favorably in the news media.
95.7% of LPL Financial shares are owned by institutional investors. Comparatively, 99.5% of Tradeweb Markets shares are owned by institutional investors. 1.3% of LPL Financial shares are owned by insiders. Comparatively, 1.9% of Tradeweb Markets shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
LPL Financial received 71 more outperform votes than Tradeweb Markets when rated by MarketBeat users. However, 67.62% of users gave Tradeweb Markets an outperform vote while only 58.34% of users gave LPL Financial an outperform vote.
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.
LPL Financial presently has a consensus price target of $268.36, indicating a potential upside of 2.20%. Tradeweb Markets has a consensus price target of $106.80, indicating a potential upside of 5.69%. Given Tradeweb Markets' stronger consensus rating and higher probable upside, analysts clearly believe Tradeweb Markets is more favorable than LPL Financial.
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 23.3% 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.
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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