LPL Financial Holdings Inc. (LPLA) vs Stifel Financial Corporation (SF)

LPL Financial Holdings Inc. and Stifel Financial Corporation are both Capital Markets companies. LPL Financial Holdings Inc. is the larger, with a market value of $23.4B against $10.8B — 2.2× the size. Stifel Financial Corporation trades at the lower P/E: 11.8× against 17.2×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 31.0% against 10.9%. Stifel Financial Corporation has the higher net margin (15.9% vs 6.83%) and the lower return on invested capital (0.00% vs 13.6%). Both pay a dividend; Stifel Financial Corporation yields more (1.85% vs 0.40%). Across the 21 metrics below, LPL Financial Holdings Inc. leads on 11 and Stifel Financial Corporation on 10.

Valuation

Metric LPLA SF Capital Markets median
P/E 17.22 11.76 14.35
P/S 1.16 1.84 2.07
P/B 4.08 2.05 1.36
Price to free cash flow 23.50 38.52 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.81% 8.50% (8.28%)
Free cash flow yield 4.25% 2.60% (1.12%)

Profitability

Metric LPLA SF Capital Markets median
Gross margin 31.49% 98.99% 68.15%
Operating margin 11.25% 21.23% 0.00%
Net margin 6.83% 15.87% (0.34%)
Free cash flow margin 4.94% 0.00% 0.00%
Return on equity 25.66% 0.00% 0.00%
Return on assets 7.35% 0.00% 0.00%
Return on invested capital 13.59% 0.00% 0.00%

Growth

Metric LPLA SF Capital Markets median
Revenue growth (TTM) 31.04% 10.91% 19.72%
EPS growth (last fiscal year) (22.17%) (6.08%) 16.79%
Revenue growth, 5-year CAGR 23.68% 8.07% 17.41%
Net income growth, 5-year CAGR 12.80% 6.30% 0.00%

Health

Metric LPLA SF Capital Markets median
Debt to equity 1.34 0.29 0.07
Current ratio 2.62 0.88 1.51
Net debt to EBITDA 1.87 (1.36) (0.03)

Dividend

Metric LPLA SF Capital Markets median
Dividend yield 0.40% 1.85% 1.58%
Payout ratio 0.07 0.23 0.19

Size

Metric LPLA SF Capital Markets median
Market cap 23.43b 10.78b 527.01m

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