LPL Financial (LPLA) Competitors

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

Does the media prefer IBKR or LPLA?

In the previous week, LPL Financial had 5 more articles in the media than Interactive Brokers Group. MarketBeat recorded 13 mentions for LPL Financial and 8 mentions for Interactive Brokers Group. LPL Financial's average media sentiment score of 1.10 beat Interactive Brokers Group's score of 0.53 indicating that LPL Financial is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Interactive Brokers Group	2 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
LPL Financial	9 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Is IBKR or LPLA more profitable?

Interactive Brokers Group has a net margin of 9.53% compared to LPL Financial's net margin of 8.23%. LPL Financial's return on equity of 46.34% beat Interactive Brokers Group's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Interactive Brokers Group	9.53%	4.97%	0.55%
LPL Financial	8.23%	46.34%	10.36%

Which has more volatility and risk, IBKR or LPLA?

Interactive Brokers Group has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

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

23.8% of Interactive Brokers Group shares are held by institutional investors. Comparatively, 95.7% of LPL Financial shares are held by institutional investors. 3.0% of Interactive Brokers Group shares are held by insiders. Comparatively, 1.3% of LPL Financial shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Which has better valuation & earnings, IBKR or LPLA?

LPL Financial has higher revenue and earnings than Interactive Brokers Group. LPL Financial is trading at a lower price-to-earnings ratio than Interactive Brokers Group, 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
Interactive Brokers Group	$5.19B	18.90	$755M	$1.85	31.34
LPL Financial	$12.39B	2.48	$1.06B	$14.45	26.59

Do analysts recommend IBKR or LPLA?

Interactive Brokers Group presently has a consensus target price of $53.38, suggesting a potential downside of 7.93%. LPL Financial has a consensus target price of $387.69, suggesting a potential upside of 0.89%. Given LPL Financial's stronger consensus rating and higher probable upside, analysts clearly believe LPL Financial is more favorable than Interactive Brokers Group.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Interactive Brokers Group	0 Sell rating(s)	2 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	2.75
LPL Financial	0 Sell rating(s)	1 Hold rating(s)	12 Buy rating(s)	0 Strong Buy rating(s)	2.92

Is IBKR or LPLA a better dividend stock?

Interactive Brokers Group pays an annual dividend of $0.32 per share and has a dividend yield of 0.6%. LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.3%. Interactive Brokers Group pays out 17.3% of its earnings in the form of a dividend. LPL Financial pays out 8.3% 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. Interactive Brokers Group has raised its dividend for 2 consecutive years. Interactive Brokers Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

LPL Financial beats Interactive Brokers Group on 12 of the 19 factors compared between the two stocks.