The Goldman Sachs Group, Inc. (GS) vs LPL Financial Holdings Inc. (LPLA)

The Goldman Sachs Group, Inc. and LPL Financial Holdings Inc. are both Capital Markets companies. The Goldman Sachs Group, Inc. is the larger, with a market value of $269.9B against $23.8B — 11.3× the size. The Goldman Sachs Group, Inc. trades at the lower P/E: 14.3× against 25.0×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 17.8%. The Goldman Sachs Group, Inc. has the higher net margin (30.3% vs 5.13%) and the lower return on invested capital (0.00% vs 11.0%). Both pay a dividend; The Goldman Sachs Group, Inc. yields more (2.96% vs 0.53%). Across the 22 metrics below, The Goldman Sachs Group, Inc. leads on 12 and LPL Financial Holdings Inc. on 10.

Valuation

Metric GS LPLA Capital Markets median
P/E 14.25 24.97 15.78
P/S 4.24 1.28 2.32
P/B 2.56 4.36 1.89
Price to free cash flow n/m n/m 6.25
EV/EBITDA 2.67 11.78 8.87
EV/Sales 1.14 1.50 2.28
Earnings yield 7.02% 4.00% (3.77%)
Free cash flow yield (14.57%) (3.71%) (1.49%)

Profitability

Metric GS LPLA Capital Markets median
Gross margin 100.00% 31.85% 62.80%
Operating margin 39.72% 9.06% 0.00%
Net margin 30.28% 5.13% (0.55%)
Free cash flow margin (61.77%) (4.75%) 0.00%
Return on equity 18.34% 18.59% 0.00%
Return on assets 1.02% 5.40% 0.00%
Return on invested capital 0.00% 11.01% 0.00%

Growth

Metric GS LPLA Capital Markets median
Revenue growth (TTM) 17.77% 38.82% 21.02%
EPS growth (last fiscal year) 26.59% (22.17%) —
Revenue growth, 5-year CAGR 5.52% 23.68% 18.16%
Net income growth, 5-year CAGR 12.83% 12.80% 0.00%

Health

Metric GS LPLA Capital Markets median
Debt to equity 2.83 1.30 0.08
Current ratio 0.63 2.39 1.51
Net debt to EBITDA (8.86) 1.87 (0.24)

Dividend

Metric GS LPLA Capital Markets median
Dividend yield 2.96% 0.53% 2.20%
Payout ratio 0.43 0.08 0.00

Size

Metric GS LPLA Capital Markets median
Market cap 269.89b 23.84b 724.58m

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