NDAQ vs. LPLA, SNEX, ICE, CME, TROW, TW, ACGL, NWG, DB, and DFS
Should you be buying Nasdaq stock or one of its competitors? The main competitors of Nasdaq include LPL Financial (LPLA), StoneX Group (SNEX), Intercontinental Exchange (ICE), CME Group (CME), T. Rowe Price Group (TROW), Tradeweb Markets (TW), Arch Capital Group (ACGL), NatWest Group (NWG), Deutsche Bank Aktiengesellschaft (DB), and Discover Financial Services (DFS).
Nasdaq (NASDAQ:NDAQ) and LPL Financial (NASDAQ:LPLA) are both large-cap finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, media sentiment, community ranking, earnings, dividends, profitability, analyst recommendations, valuation and risk.
Nasdaq has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
In the previous week, Nasdaq had 14 more articles in the media than LPL Financial. MarketBeat recorded 34 mentions for Nasdaq and 20 mentions for LPL Financial. LPL Financial's average media sentiment score of 0.59 beat Nasdaq's score of 0.25 indicating that LPL Financial is being referred to more favorably in the news media.
Nasdaq presently has a consensus price target of $66.92, suggesting a potential upside of 11.81%. LPL Financial has a consensus price target of $276.00, suggesting a potential upside of 2.55%. Given Nasdaq's stronger consensus rating and higher possible upside, equities research analysts plainly believe Nasdaq is more favorable than LPL Financial.
72.5% of Nasdaq shares are owned by institutional investors. Comparatively, 95.7% of LPL Financial shares are owned by institutional investors. 0.8% of Nasdaq shares are owned by company insiders. Comparatively, 1.0% of LPL Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Nasdaq received 365 more outperform votes than LPL Financial when rated by MarketBeat users. Likewise, 69.58% of users gave Nasdaq an outperform vote while only 58.34% of users gave LPL Financial an outperform vote.
Nasdaq has a net margin of 15.98% compared to LPL Financial's net margin of 10.61%. LPL Financial's return on equity of 57.68% beat Nasdaq's return on equity.
LPL Financial has higher revenue and earnings than Nasdaq. LPL Financial is trading at a lower price-to-earnings ratio than Nasdaq, indicating that it is currently the more affordable of the two stocks.
Nasdaq pays an annual dividend of $0.88 per share and has a dividend yield of 1.5%. LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Nasdaq pays out 46.3% of its earnings in the form of a dividend. LPL Financial pays out 8.8% 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.
Summary
Nasdaq 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 NDAQ 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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