WallStSmart

LPL Financial Holdings Inc (LPLA)vsCharles Schwab Corp (SCHW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Charles Schwab Corp generates 44% more annual revenue ($23.92B vs $16.59B). SCHW leads profitability with a 37.0% profit margin vs 5.2%. LPLA appears more attractively valued with a PEG of 0.40. SCHW earns a higher WallStSmart Score of 75/100 (B+).

LPLA

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 1/9Altman Z: 1.77

SCHW

Strong Buy

75

out of 100

Grade: B+

Growth: 8.0Profit: 8.0Value: 10.0Quality: 8.3
Piotroski: 6/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LPLASignificantly Overvalued (-119.2%)

Margin of Safety

-119.2%

Fair Value

$154.49

Current Price

$300.68

$146.19 premium

UndervaluedFair: $154.49Overvalued
SCHWUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$217.62

Current Price

$95.68

$121.94 discount

UndervaluedFair: $217.62Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LPLA3 strengths · Avg: 9.7/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Revenue GrowthGrowth
41.8%10/10

Revenue surging 41.8% year-over-year

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

SCHW6 strengths · Avg: 9.2/10
Profit MarginProfitability
37.0%10/10

Keeps 37 of every $100 in revenue as profit

Operating MarginProfitability
49.7%10/10

Strong operational efficiency at 49.7%

Debt/EquityHealth
0.0910/10

Conservative balance sheet, low leverage

Market CapQuality
$169.34B9/10

Large-cap with strong market position

Revenue GrowthGrowth
18.9%8/10

18.9% revenue growth

EPS GrowthGrowth
41.1%8/10

Earnings expanding 41.1% YoY

Areas to Watch

LPLA4 concerns · Avg: 3.8/10
P/E RatioValuation
27.5x4/10

Moderate valuation

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Altman Z-ScoreHealth
1.774/10

Distress zone — elevated risk

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

SCHW1 concerns · Avg: 2.0/10
Free Cash FlowQuality
$-921.00M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LPLA

The strongest argument for LPLA centers on PEG Ratio, Revenue Growth, Return on Equity. Revenue growth of 41.8% demonstrates continued momentum. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : SCHW

The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.

Bear Case : LPLA

The primary concerns for LPLA are P/E Ratio, EPS Growth, Altman Z-Score.

Bear Case : SCHW

The primary concerns for SCHW are Free Cash Flow.

Key Dynamics to Monitor

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

SCHW carries more volatility with a beta of 0.92 — expect wider price swings.

LPLA is growing revenue faster at 41.8% — sustainability is the question.

LPLA generates stronger free cash flow (490M), providing more financial flexibility.

Bottom Line

SCHW scores higher overall (75/100 vs 68/100), backed by strong 37.0% margins and 18.9% 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.

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Charles Schwab Corp

FINANCIAL SERVICES · CAPITAL MARKETS · USA

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.

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