LPL Financial Holdings Inc. (LPLA) vs Nomura Holdings Inc ADR (NMR)

LPL Financial Holdings Inc. and Nomura Holdings Inc ADR are both Capital Markets companies. Nomura Holdings Inc ADR is the larger, with a market value of $28.6B against $23.8B — 1.2× the size. Nomura Holdings Inc ADR trades at the lower P/E: 10.3× against 25.0×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 9.61%. Nomura Holdings Inc ADR has the higher net margin (8.90% vs 5.13%) and the lower return on invested capital (0.00% vs 11.0%). Both pay a dividend; Nomura Holdings Inc ADR yields more (2.73% vs 0.53%). Across the 21 metrics below, Nomura Holdings Inc ADR leads on 13 and LPL Financial Holdings Inc. on 8.

Valuation

Metric LPLA NMR Capital Markets median
P/E 24.97 10.27 15.78
P/S 1.28 0.89 2.32
P/B 4.36 1.17 1.89
Price to free cash flow n/m 5.49 6.25
EV/EBITDA 11.78 n/m 8.87
EV/Sales 1.50 (3.26) 2.28
Earnings yield 4.00% 9.74% (3.77%)
Free cash flow yield (3.71%) 18.20% (1.49%)

Profitability

Metric LPLA NMR Capital Markets median
Gross margin 31.85% 95.73% 62.80%
Operating margin 9.06% 73.13% 0.00%
Net margin 5.13% 8.90% (0.55%)
Free cash flow margin (4.75%) 0.00% 0.00%
Return on equity 18.59% 11.83% 0.00%
Return on assets 5.40% 0.71% 0.00%
Return on invested capital 11.01% 0.00% 0.00%

Growth

Metric LPLA NMR Capital Markets median
Revenue growth (TTM) 38.82% 9.61% 21.02%
EPS growth (last fiscal year) (22.17%) 8.22% —
Revenue growth, 5-year CAGR 23.68% 15.62% 18.16%
Net income growth, 5-year CAGR 12.80% 10.68% 0.00%

Health

Metric LPLA NMR Capital Markets median
Debt to equity 1.30 8.06 0.08
Current ratio 2.39 2.00 1.51
Net debt to EBITDA 1.87 1.52 (0.24)

Dividend

Metric LPLA NMR Capital Markets median
Dividend yield 0.53% 2.73% 2.20%
Payout ratio 0.08 0.00 0.00

Size

Metric LPLA NMR Capital Markets median
Market cap 23.84b 28.55b 724.58m

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