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LPL Financial Holdings Inc. (LPLA) vs Morgan Stanley (MS)

LPL Financial Holdings Inc. and Morgan Stanley are both Capital Markets companies. Morgan Stanley is the larger, with a market value of $286.0B against $25.8B — 11.1× the size. Morgan Stanley trades at the lower P/E: 14.0× against 25.5×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 12.0%. Morgan Stanley has the higher net margin (15.2% vs 5.13%) and the lower return on invested capital (0.00% vs 11.0%). Both pay a dividend; Morgan Stanley yields more (2.30% vs 0.37%). Across the 20 metrics below, LPL Financial Holdings Inc. leads on 10 and Morgan Stanley on 10.

Valuation

Metric LPLA MS Capital Markets median
P/E 25.49 14.00 14.20
P/S 1.31 2.14 2.00
P/B 4.45 2.60 1.51
Price to free cash flow n/m n/m 6.36
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.92% 7.14% (3.94%)
Free cash flow yield (3.64%) (6.65%) (1.62%)

Profitability

Metric LPLA MS Capital Markets median
Gross margin 31.85% 95.94% 62.80%
Operating margin 9.06% 59.08% 0.00%
Net margin 5.13% 15.16% (0.55%)
Free cash flow margin (4.75%) 0.00% 0.00%
Return on equity 18.59% 0.00% 0.00%
Return on assets 5.40% 0.00% 0.00%
Return on invested capital 11.01% 0.00% 0.00%

Growth

Metric LPLA MS Capital Markets median
Revenue growth (TTM) 38.82% 12.03% 20.70%
EPS growth (last fiscal year) (22.17%) 28.43% 22.92%
Revenue growth, 5-year CAGR 23.68% 17.86% 18.16%
Net income growth, 5-year CAGR 12.80% 9.13% 0.00%

Health

Metric LPLA MS Capital Markets median
Debt to equity 1.30 3.34 0.08
Current ratio 2.39 0.79 1.50
Net debt to EBITDA 1.87 (0.46) (0.24)

Dividend

Metric LPLA MS Capital Markets median
Dividend yield 0.37% 2.30% 1.36%
Payout ratio 0.10 0.33 0.19

Size

Metric LPLA MS Capital Markets median
Market cap 25.79b 286.00b 565.91m

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