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

LPL Financial Holdings Inc. and Tradeweb Markets Inc. are both Capital Markets companies. Tradeweb Markets Inc. is the larger, with a market value of $29.6B against $23.4B — 1.3× the size. LPL Financial Holdings Inc. trades at the lower P/E: 17.2× against 29.0×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 31.0% against 14.4%. Tradeweb Markets Inc. has the higher net margin (39.8% vs 6.83%) and the lower return on invested capital (12.1% vs 13.6%). Both pay a dividend; Tradeweb Markets Inc. yields more (0.42% vs 0.40%). Across the 21 metrics below, Tradeweb Markets Inc. leads on 12 and LPL Financial Holdings Inc. on 9.

Valuation

Metric LPLA TW Capital Markets median
P/E 17.22 29.01 14.35
P/S 1.16 11.77 2.07
P/B 4.08 3.66 1.36
Price to free cash flow 23.50 24.80 9.28
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 5.81% 3.45% (8.28%)
Free cash flow yield 4.25% 4.03% (1.12%)

Profitability

Metric LPLA TW Capital Markets median
Gross margin 31.49% 100.00% 68.15%
Operating margin 11.25% 44.12% 0.00%
Net margin 6.83% 39.83% (0.34%)
Free cash flow margin 4.94% 47.44% 0.00%
Return on equity 25.66% 12.74% 0.00%
Return on assets 7.35% 11.07% 0.00%
Return on invested capital 13.59% 12.06% 0.00%

Growth

Metric LPLA TW Capital Markets median
Revenue growth (TTM) 31.04% 14.43% 19.72%
EPS growth (last fiscal year) (22.17%) 62.23% 16.79%
Revenue growth, 5-year CAGR 23.68% 18.12% 17.41%
Net income growth, 5-year CAGR 12.80% 37.35% 0.00%

Health

Metric LPLA TW Capital Markets median
Debt to equity 1.34 0.00 0.07
Current ratio 2.62 4.55 1.51
Net debt to EBITDA 1.87 (1.92) (0.03)

Dividend

Metric LPLA TW Capital Markets median
Dividend yield 0.40% 0.42% 1.58%
Payout ratio 0.07 0.12 0.19

Size

Metric LPLA TW Capital Markets median
Market cap 23.43b 29.61b 527.01m

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