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LPL Financial Holdings Inc. (LPLA) vs XP Inc. (XP)

LPL Financial Holdings Inc. and XP Inc. are both Capital Markets companies. LPL Financial Holdings Inc. is the larger, with a market value of $25.8B against $15.5B — 1.7× the size. XP Inc. trades at the lower P/E: 15.1× against 25.5×. LPL Financial Holdings Inc. grew revenue faster over the last twelve months: 38.8% against 18.2%. XP Inc. has the higher net margin (27.8% vs 5.13%) and the higher return on invested capital (20.5% vs 11.0%). Both pay a dividend; XP Inc. yields more (1.30% vs 0.37%). Across the 20 metrics below, XP Inc. leads on 16 and LPL Financial Holdings Inc. on 4.

Valuation

Metric LPLA XP Capital Markets median
P/E 25.49 15.12 14.20
P/S 1.31 4.15 2.00
P/B 4.45 3.05 1.51
Price to free cash flow n/m 6.36 6.36
EV/EBITDA — — —
EV/Sales — — —
Earnings yield 3.92% 6.61% (3.94%)
Free cash flow yield (3.64%) 15.72% (1.62%)

Profitability

Metric LPLA XP Capital Markets median
Gross margin 31.85% 100.00% 62.80%
Operating margin 9.06% 33.63% 0.00%
Net margin 5.13% 27.84% (0.55%)
Free cash flow margin (4.75%) 65.15% 0.00%
Return on equity 18.59% 22.76% 0.00%
Return on assets 5.40% 1.37% 0.00%
Return on invested capital 11.01% 20.52% 0.00%

Growth

Metric LPLA XP Capital Markets median
Revenue growth (TTM) 38.82% 18.17% 20.70%
EPS growth (last fiscal year) (22.17%) 13.73% 22.92%
Revenue growth, 5-year CAGR 23.68% 15.82% 18.16%
Net income growth, 5-year CAGR 12.80% 18.11% 0.00%

Health

Metric LPLA XP Capital Markets median
Debt to equity 1.30 0.07 0.08
Current ratio 2.39 4.80 1.50
Net debt to EBITDA 1.87 (1.52) (0.24)

Dividend

Metric LPLA XP Capital Markets median
Dividend yield 0.37% 1.30% 1.36%
Payout ratio 0.10 0.20 0.19

Size

Metric LPLA XP Capital Markets median
Market cap 25.79b 15.53b 565.91m

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