WallStSmart

LPL Financial Holdings Inc (LPLA)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 310% more annual revenue ($73.17B vs $17.84B). MS leads profitability with a 24.7% profit margin vs 5.0%. LPLA appears more attractively valued with a PEG of 0.45. MS earns a higher WallStSmart Score of 71/100 (B).

LPLA

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 7.0Quality: 6.5
Piotroski: 2/9Altman Z: 2.22

MS

Strong Buy

71

out of 100

Grade: B

Growth: 9.3Profit: 7.5Value: 4.3Quality: 4.0
Piotroski: 5/9Altman Z: 0.38

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LPLA2 strengths · Avg: 10.0/10
PEG RatioValuation
0.4510/10

Growing faster than its price suggests

Revenue GrowthGrowth
35.0%10/10

Revenue surging 35.0% year-over-year

MS5 strengths · Avg: 9.0/10
Market CapQuality
$343.82B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
40.6%10/10

Strong operational efficiency at 40.6%

Profit MarginProfitability
24.7%9/10

Keeps 25 of every $100 in revenue as profit

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

EPS GrowthGrowth
31.9%8/10

Earnings expanding 31.9% YoY

Areas to Watch

LPLA4 concerns · Avg: 3.5/10
P/E RatioValuation
26.6x4/10

Moderate valuation

EPS GrowthGrowth
4.5%4/10

4.5% earnings growth

Profit MarginProfitability
5.0%3/10

5.0% margin — thin

Debt/EquityHealth
1.393/10

Elevated debt levels

MS4 concerns · Avg: 1.8/10
PEG RatioValuation
2.572/10

Expensive relative to growth rate

Free Cash FlowQuality
$-7.85B2/10

Negative free cash flow — burning cash

Altman Z-ScoreHealth
0.382/10

Distress zone — elevated risk

Debt/EquityHealth
3.451/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : LPLA

The strongest argument for LPLA centers on PEG Ratio, Revenue Growth. Revenue growth of 35.0% demonstrates continued momentum. PEG of 0.45 suggests the stock is reasonably priced for its growth.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 40.6%. Revenue growth of 16.3% demonstrates continued momentum.

Bear Case : LPLA

The primary concerns for LPLA are P/E Ratio, EPS Growth, Profit Margin.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Free Cash Flow, Altman Z-Score. Debt-to-equity of 3.45 is elevated, increasing financial risk.

Key Dynamics to Monitor

LPLA profiles as a hypergrowth stock while MS is a growth play — different risk/reward profiles.

MS carries more volatility with a beta of 1.22 — expect wider price swings.

LPLA is growing revenue faster at 35.0% — sustainability is the question.

LPLA generates stronger free cash flow (135M), providing more financial flexibility.

Bottom Line

MS scores higher overall (71/100 vs 68/100), backed by strong 24.7% margins and 16.3% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

LPL Financial Holdings Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

LPL Financial Holdings Inc., provides an integrated platform of brokerage and investment advisory services to independent financial advisers and financial advisers at financial institutions in the United States. The company is headquartered in San Diego, California.

Visit Website →

Morgan Stanley

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.

Want to dig deeper into these stocks?