Circle Internet Group, Inc. (CRCL) vs LPL Financial Holdings Inc. (LPLA)

Circle Internet Group, Inc. and LPL Financial Holdings Inc. are both Capital Markets companies. Circle Internet Group, Inc. and LPL Financial Holdings Inc. are of similar size ($23.8B and $23.6B). LPL Financial Holdings Inc. trades at the lower P/E: 25.0× against 46.6×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 37.5%. Circle Internet Group, Inc. has the higher net margin (15.5% vs 5.13%) and the lower return on invested capital (0.00% vs 11.0%). Across the 18 metrics below, LPL Financial Holdings Inc. leads on 12 and Circle Internet Group, Inc. on 6.

Valuation

Metric CRCL LPLA Capital Markets median
P/E 46.60 24.97 15.78
P/S 7.60 1.28 2.32
P/B 6.29 4.36 1.89
Price to free cash flow 31.80 n/m 6.25
EV/EBITDA n/m 11.78 8.87
EV/Sales (18.47) 1.50 2.28
Earnings yield 2.15% 4.00% (3.77%)
Free cash flow yield 3.14% (3.71%) (1.49%)

Profitability

Metric CRCL LPLA Capital Markets median
Gross margin 40.51% 31.85% 62.80%
Operating margin 7.42% 9.06% 0.00%
Net margin 15.53% 5.13% (0.55%)
Free cash flow margin 23.90% (4.75%) 0.00%
Return on equity 15.35% 18.59% 0.00%
Return on assets 0.64% 5.40% 0.00%
Return on invested capital 0.00% 11.01% 0.00%

Growth

Metric CRCL LPLA Capital Markets median
Revenue growth (TTM) 37.54% 38.82% 21.02%
EPS growth (last fiscal year) (120.65%) (22.17%) —
Revenue growth, 5-year CAGR — 23.68% 18.16%
Net income growth, 5-year CAGR — 12.80% 0.00%

Health

Metric CRCL LPLA Capital Markets median
Debt to equity 0.00 1.30 0.08
Current ratio 1.03 2.39 1.51
Net debt to EBITDA 3,906.55 1.87 (0.24)

Dividend

Metric CRCL LPLA Capital Markets median
Dividend yield — 0.53% 2.20%
Payout ratio — 0.08 0.00

Size

Metric CRCL LPLA Capital Markets median
Market cap 23.61b 23.84b 724.58m

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