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. LPL Financial Holdings Inc. is the larger, with a market value of $23.4B against $17.7B — 1.3× the size. LPL Financial Holdings Inc. trades at the lower P/E: 17.2× against 37.4×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 31.0% against 25.1%. Circle Internet Group, Inc. has the higher net margin (15.3% vs 6.83%) and the lower return on invested capital (0.00% vs 13.6%). Across the 18 metrics below, LPL Financial Holdings Inc. leads on 14 and Circle Internet Group, Inc. on 4.

Valuation

Metric CRCL LPLA Capital Markets median
P/E 37.37 17.22 14.35
P/S 5.84 1.16 2.07
P/B 4.58 4.08 1.36
Price to free cash flow 26.49 23.50 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 2.68% 5.81% (8.28%)
Free cash flow yield 3.78% 4.25% (1.12%)

Profitability

Metric CRCL LPLA Capital Markets median
Gross margin 0.00% 31.49% 68.15%
Operating margin 11.31% 11.25% 0.00%
Net margin 15.28% 6.83% (0.34%)
Free cash flow margin 22.02% 4.94% 0.00%
Return on equity 13.44% 25.66% 0.00%
Return on assets 0.60% 7.35% 0.00%
Return on invested capital 0.00% 13.59% 0.00%

Growth

Metric CRCL LPLA Capital Markets median
Revenue growth (TTM) 25.12% 31.04% 19.72%
EPS growth (last fiscal year) (246.67%) (22.17%) 16.79%
Revenue growth, 5-year CAGR — 23.68% 17.41%
Net income growth, 5-year CAGR — 12.80% 0.00%

Health

Metric CRCL LPLA Capital Markets median
Debt to equity 0.00 1.34 0.07
Current ratio 1.04 2.62 1.51
Net debt to EBITDA 3,906.55 1.87 (0.03)

Dividend

Metric CRCL LPLA Capital Markets median
Dividend yield — 0.40% 1.58%
Payout ratio — 0.07 0.19

Size

Metric CRCL LPLA Capital Markets median
Market cap 17.72b 23.43b 527.01m

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