Jefferies Financial Group Inc. (JEF) vs LPL Financial Holdings Inc. (LPLA)

Jefferies Financial 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 $11.2B — 2.1× the size. Jefferies Financial Group Inc. trades at the lower P/E: 12.7× against 17.2×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 31.0% against 17.7%. Jefferies Financial Group Inc. has the higher net margin (10.1% vs 6.83%) and the lower return on invested capital (8.20% vs 13.6%). Both pay a dividend; Jefferies Financial Group Inc. yields more (3.27% vs 0.40%). Across the 21 metrics below, Jefferies Financial Group Inc. leads on 12 and LPL Financial Holdings Inc. on 9.

Valuation

Metric JEF LPLA Capital Markets median
P/E 12.70 17.22 14.35
P/S 1.14 1.16 2.07
P/B 0.90 4.08 1.36
Price to free cash flow 2.33 23.50 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 7.87% 5.81% (8.28%)
Free cash flow yield 42.96% 4.25% (1.12%)

Profitability

Metric JEF LPLA Capital Markets median
Gross margin 98.17% 31.49% 68.15%
Operating margin 23.38% 11.25% 0.00%
Net margin 10.06% 6.83% (0.34%)
Free cash flow margin 48.96% 4.94% 0.00%
Return on equity 8.06% 25.66% 0.00%
Return on assets 1.14% 7.35% 0.00%
Return on invested capital 8.20% 13.59% 0.00%

Growth

Metric JEF LPLA Capital Markets median
Revenue growth (TTM) 17.74% 31.04% 19.72%
EPS growth (last fiscal year) (5.35%) (22.17%) 16.79%
Revenue growth, 5-year CAGR 4.65% 23.68% 17.41%
Net income growth, 5-year CAGR (3.90%) 12.80% 0.00%

Health

Metric JEF LPLA Capital Markets median
Debt to equity 2.09 1.34 0.07
Current ratio 1.02 2.62 1.51
Net debt to EBITDA 1.89 1.87 (0.03)

Dividend

Metric JEF LPLA Capital Markets median
Dividend yield 3.27% 0.40% 1.58%
Payout ratio 0.43 0.07 0.19

Size

Metric JEF LPLA Capital Markets median
Market cap 11.16b 23.43b 527.01m

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