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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. LPL Financial Holdings Inc. and Tradeweb Markets Inc. are of similar size ($26.2B and $25.8B). LPL Financial Holdings Inc. trades at the lower P/E: 25.5× against 27.0×. 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; Tradeweb Markets Inc. yields more (0.48% vs 0.37%). Across the 20 metrics below, Tradeweb Markets Inc. leads on 14 and LPL Financial Holdings Inc. on 6.

Valuation

Metric LPLA TW Capital Markets median
P/E 25.49 27.02 14.20
P/S 1.31 10.93 2.00
P/B 4.45 3.29 1.51
Price to free cash flow n/m 22.42 6.36
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.92% 3.70% (3.94%)
Free cash flow yield (3.64%) 4.46% (1.62%)

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% 20.70%
EPS growth (last fiscal year) (22.17%) 62.23% 22.92%
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 1.50
Net debt to EBITDA 1.87 (1.92) (0.24)

Dividend

Metric LPLA TW Capital Markets median
Dividend yield 0.37% 0.48% 1.36%
Payout ratio 0.10 0.13 0.19

Size

Metric LPLA TW Capital Markets median
Market cap 25.79b 26.21b 565.91m

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