LPLA vs. TW, RKT, TROW, NDAQ, MSCI, SNEX, AMTD, MCO, MATH, and AGBAW
Should you be buying LPL Financial stock or one of its competitors? The main competitors of LPL Financial include Tradeweb Markets (TW), Rocket Companies (RKT), T. Rowe Price Group (TROW), Nasdaq (NDAQ), MSCI (MSCI), StoneX Group (SNEX), TD Ameritrade (AMTD), Moody's (MCO), Metalpha Technology (MATH), and AGBA Group (AGBAW).
Tradeweb Markets (NASDAQ:TW) and LPL Financial (NASDAQ:LPLA) are both large-cap finance companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, community ranking, institutional ownership, valuation, profitability, media sentiment, analyst recommendations, earnings and dividends.
Tradeweb Markets pays an annual dividend of $0.40 per share and has a dividend yield of 0.4%. LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Tradeweb Markets pays out 21.2% of its earnings in the form of a dividend. LPL Financial pays out 9.1% 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 2 consecutive years and LPL Financial has raised its dividend for 1 consecutive years. LPL Financial is clearly the better dividend stock, given its higher yield and lower payout ratio.
LPL Financial received 70 more outperform votes than Tradeweb Markets when rated by MarketBeat users. However, 67.62% of users gave Tradeweb Markets an outperform vote while only 58.32% of users gave LPL Financial an outperform vote.
Tradeweb Markets currently has a consensus target price of $109.27, suggesting a potential upside of 4.53%. LPL Financial has a consensus target price of $276.20, suggesting a potential upside of 2.00%. Given LPL Financial's stronger consensus rating and higher probable upside, research analysts clearly believe Tradeweb Markets is more favorable than LPL Financial.
Tradeweb Markets has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.
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.
Tradeweb Markets has a net margin of 28.44% compared to Tradeweb Markets' net margin of 9.71%. Tradeweb Markets' return on equity of 56.36% beat LPL Financial's return on equity.
In the previous week, LPL Financial had 37 more articles in the media than Tradeweb Markets. MarketBeat recorded 40 mentions for LPL Financial and 3 mentions for Tradeweb Markets. Tradeweb Markets' average media sentiment score of 0.61 beat LPL Financial's score of 0.49 indicating that LPL Financial is being referred to more favorably in the news media.
99.5% of Tradeweb Markets shares are owned by institutional investors. Comparatively, 95.7% of LPL Financial shares are owned by institutional investors. 1.9% of Tradeweb Markets shares are owned by company insiders. Comparatively, 1.3% of LPL Financial 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.
Summary
Tradeweb Markets beats LPL Financial on 11 of the 21 factors compared between the two stocks.
Get LPL Financial News Delivered to You Automatically
Sign up to receive the latest news and ratings for LPLA and its competitors with MarketBeat's FREE daily newsletter.
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.
LPL Financial Competitors List
Related Companies and Tools
