LPLA vs. TROW, TW, NDAQ, SNEX, AMTD, CME, ICE, WRB, HBAN, and PFG
Should you be buying LPL Financial stock or one of its competitors? The main competitors of LPL Financial include T. Rowe Price Group (TROW), Tradeweb Markets (TW), Nasdaq (NDAQ), StoneX Group (SNEX), TD Ameritrade (AMTD), CME Group (CME), Intercontinental Exchange (ICE), W. R. Berkley (WRB), Huntington Bancshares (HBAN), and Principal Financial Group (PFG). These companies are all part of the "finance" sector.
T. Rowe Price Group (NASDAQ:TROW) 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 community ranking, analyst recommendations, media sentiment, earnings, institutional ownership, valuation, profitability, risk and dividends.
T. Rowe Price Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
T. Rowe Price Group received 121 more outperform votes than LPL Financial when rated by MarketBeat users. However, 58.32% of users gave LPL Financial an outperform vote while only 52.52% of users gave T. Rowe Price Group an outperform vote.
73.4% of T. Rowe Price Group shares are owned by institutional investors. Comparatively, 95.7% of LPL Financial shares are owned by institutional investors. 2.0% of T. Rowe Price Group shares are owned by insiders. Comparatively, 1.3% of LPL Financial shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
T. Rowe Price Group has a net margin of 29.09% compared to T. Rowe Price Group's net margin of 9.71%. T. Rowe Price Group's return on equity of 55.22% beat LPL Financial's return on equity.
T. Rowe Price Group pays an annual dividend of $4.96 per share and has a dividend yield of 4.2%. LPL Financial pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. T. Rowe Price Group pays out 58.9% 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. T. Rowe Price Group has increased its dividend for 38 consecutive years and LPL Financial has increased its dividend for 1 consecutive years. T. Rowe Price Group is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
T. Rowe Price Group currently has a consensus price target of $112.10, suggesting a potential downside of 3.99%. LPL Financial has a consensus price target of $276.20, suggesting a potential upside of 3.15%. Given T. Rowe Price Group's stronger consensus rating and higher possible upside, analysts clearly believe LPL Financial is more favorable than T. Rowe Price Group.
In the previous week, T. Rowe Price Group had 1 more articles in the media than LPL Financial. MarketBeat recorded 9 mentions for T. Rowe Price Group and 8 mentions for LPL Financial. T. Rowe Price Group's average media sentiment score of 1.30 beat LPL Financial's score of 1.13 indicating that LPL Financial is being referred to more favorably in the news media.
T. Rowe Price Group has higher earnings, but lower revenue than LPL Financial. T. Rowe Price Group is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.
Summary
LPL Financial beats T. Rowe Price Group on 11 of the 21 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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