Tradeweb Markets (TW) Competitors

Tradeweb Markets (NASDAQ:TW) and LPL Financial (NASDAQ:LPLA) are both large-cap finance companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk, media sentiment and profitability.

Do insiders & institutionals have more ownership in TW or LPLA?

99.5% of Tradeweb Markets shares are owned by institutional investors. Comparatively, 95.7% of LPL Financial shares are owned by institutional investors. 0.2% of Tradeweb Markets shares are owned by company insiders. Comparatively, 0.7% of LPL Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Which has more volatility and risk, TW or LPLA?

Tradeweb Markets has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500.

Is TW or LPLA more profitable?

Tradeweb Markets has a net margin of 28.85% compared to LPL Financial's net margin of 7.91%. LPL Financial's return on equity of 39.80% beat Tradeweb Markets' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Tradeweb Markets	28.85%	11.90%	10.29%
LPL Financial	7.91%	39.80%	9.76%

Which has preferable earnings and valuation, TW or LPLA?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tradeweb Markets	$1.73B	14.33	$501.51M	$2.59	40.38
LPL Financial	$12.39B	2.05	$1.06B	$14.62	21.70

Do analysts rate TW or LPLA?

Tradeweb Markets currently has a consensus price target of $149.33, suggesting a potential upside of 42.78%. LPL Financial has a consensus price target of $395.77, suggesting a potential upside of 24.72%. Given Tradeweb Markets' higher possible upside, equities research analysts clearly believe Tradeweb Markets is more favorable than LPL Financial.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tradeweb Markets	0 Sell rating(s)	7 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.53
LPL Financial	1 Sell rating(s)	4 Hold rating(s)	9 Buy rating(s)	1 Strong Buy rating(s)	2.67

Does the media prefer TW or LPLA?

In the previous week, LPL Financial had 11 more articles in the media than Tradeweb Markets. MarketBeat recorded 22 mentions for LPL Financial and 11 mentions for Tradeweb Markets. LPL Financial's average media sentiment score of 0.87 beat Tradeweb Markets' score of 0.52 indicating that LPL Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Tradeweb Markets	3 Very Positive mention(s)	3 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive
LPL Financial	8 Very Positive mention(s)	3 Positive mention(s)	8 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Is TW or LPLA a better dividend stock?

Tradeweb Markets pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Tradeweb Markets pays out 18.5% of its earnings in the form of a dividend. LPL Financial pays out 8.2% 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. Tradeweb Markets has raised its dividend for 3 consecutive years. Tradeweb Markets is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

LPL Financial beats Tradeweb Markets on 11 of the 20 factors compared between the two stocks.