LPL Financial Holdings Inc. (LPLA) vs Tradeweb Markets Inc. (TW)

LPL Financial Holdings Inc. and Tradeweb Markets Inc. are both Capital Markets companies. LPL Financial Holdings Inc. and Tradeweb Markets Inc. are of similar size ($23.8B and $23.7B). Tradeweb Markets Inc. trades at the lower P/E: 24.1× against 25.0×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 14.0%. Tradeweb Markets Inc. has the higher net margin (40.7% vs 5.13%) and the higher return on invested capital (11.4% vs 11.0%). Both pay a dividend; LPL Financial Holdings Inc. yields more (0.53% vs 0.40%). Across the 22 metrics below, Tradeweb Markets Inc. leads on 15 and LPL Financial Holdings Inc. on 7.

Valuation

Metric LPLA TW Capital Markets median
P/E 24.97 24.07 15.78
P/S 1.28 9.73 2.32
P/B 4.36 2.93 1.89
Price to free cash flow n/m 19.97 6.25
EV/EBITDA 11.78 16.06 8.87
EV/Sales 1.50 8.81 2.28
Earnings yield 4.00% 4.15% (3.77%)
Free cash flow yield (3.71%) 5.01% (1.49%)

Profitability

Metric LPLA TW Capital Markets median
Gross margin 31.85% 100.00% 62.80%
Operating margin 9.06% 43.68% 0.00%
Net margin 5.13% 40.66% (0.55%)
Free cash flow margin (4.75%) 48.75% 0.00%
Return on equity 18.59% 12.76% 0.00%
Return on assets 5.40% 11.00% 0.00%
Return on invested capital 11.01% 11.41% 0.00%

Growth

Metric LPLA TW Capital Markets median
Revenue growth (TTM) 38.82% 14.04% 21.02%
EPS growth (last fiscal year) (22.17%) 62.23% —
Revenue growth, 5-year CAGR 23.68% 18.12% 18.16%
Net income growth, 5-year CAGR 12.80% 37.35% 0.00%

Health

Metric LPLA TW Capital Markets median
Debt to equity 1.30 0.00 0.08
Current ratio 2.39 6.23 1.51
Net debt to EBITDA 1.87 (1.92) (0.24)

Dividend

Metric LPLA TW Capital Markets median
Dividend yield 0.53% 0.40% 2.20%
Payout ratio 0.08 0.22 0.00

Size

Metric LPLA TW Capital Markets median
Market cap 23.84b 23.67b 724.58m

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack