The Charles Schwab Corporation (SCHW) vs Tradeweb Markets Inc. (TW)

The Charles Schwab Corporation and Tradeweb Markets Inc. are both Capital Markets companies. The Charles Schwab Corporation is the larger, with a market value of $171.9B against $23.7B — 7.3× the size. The Charles Schwab Corporation trades at the lower P/E: 17.9× against 24.1×. The Charles Schwab Corporation grew revenue faster over the last twelve months: 20.3% against 14.0%. Tradeweb Markets Inc. has the higher net margin (40.7% vs 37.4%) and the higher return on invested capital (11.4% vs 0.00%). Both pay a dividend; The Charles Schwab Corporation yields more (1.73% vs 0.40%). Across the 22 metrics below, The Charles Schwab Corporation leads on 12 and Tradeweb Markets Inc. on 10.

Valuation

Metric SCHW TW Capital Markets median
P/E 17.94 24.07 15.78
P/S 6.60 9.73 2.32
P/B 3.91 2.93 1.89
Price to free cash flow 15.93 19.97 6.25
EV/EBITDA 7.41 16.06 8.87
EV/Sales 4.65 8.81 2.28
Earnings yield 5.57% 4.15% (3.77%)
Free cash flow yield 6.28% 5.01% (1.49%)

Profitability

Metric SCHW TW Capital Markets median
Gross margin 100.00% 100.00% 62.80%
Operating margin 54.98% 43.68% 0.00%
Net margin 37.36% 40.66% (0.55%)
Free cash flow margin 41.46% 48.75% 0.00%
Return on equity 22.45% 12.76% 0.00%
Return on assets 1.99% 11.00% 0.00%
Return on invested capital 0.00% 11.41% 0.00%

Growth

Metric SCHW TW Capital Markets median
Revenue growth (TTM) 20.34% 14.04% 21.02%
EPS growth (last fiscal year) 55.52% 62.23% —
Revenue growth, 5-year CAGR 15.39% 18.12% 18.16%
Net income growth, 5-year CAGR 22.57% 37.35% 0.00%

Health

Metric SCHW TW Capital Markets median
Debt to equity 0.45 0.00 0.08
Current ratio 0.64 6.23 1.51
Net debt to EBITDA (4.52) (1.92) (0.24)

Dividend

Metric SCHW TW Capital Markets median
Dividend yield 1.73% 0.40% 2.20%
Payout ratio 0.27 0.22 0.00

Size

Metric SCHW TW Capital Markets median
Market cap 171.90b 23.67b 724.58m

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