Charles Schwab Corp (SCHW)vsXp Inc (XP)
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
XP
Xp Inc
$19.69
+2.45%
FINANCIAL SERVICES · Cap: $9.94B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 35% more annual revenue ($23.92B vs $17.77B). SCHW leads profitability with a 37.0% profit margin vs 29.1%. XP trades at a lower P/E of 10.5x. SCHW earns a higher WallStSmart Score of 75/100 (B+).
SCHW
Strong Buy75
out of 100
Grade: B+
XP
Strong Buy74
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 discount
Margin of Safety
+62.2%
Fair Value
$53.73
Current Price
$19.69
$34.04 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Attractively priced relative to earnings
Strong operational efficiency at 31.5%
Every $100 of equity generates 24 in profit
Keeps 29 of every $100 in revenue as profit
Reasonable price relative to book value
Areas to Watch
Negative free cash flow — burning cash
Weak financial health signals
Negative free cash flow — burning cash
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : XP
The strongest argument for XP centers on P/E Ratio, Operating Margin, Return on Equity. Profitability is solid with margins at 29.1% and operating margin at 31.5%. Revenue growth of 13.3% demonstrates continued momentum.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Bear Case : XP
The primary concerns for XP are Piotroski F-Score, Free Cash Flow.
Key Dynamics to Monitor
SCHW profiles as a growth stock while XP is a mature play — different risk/reward profiles.
XP carries more volatility with a beta of 1.26 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
SCHW generates stronger free cash flow (-921M), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 74/100), backed by strong 37.0% margins and 18.9% revenue growth. XP offers better value entry with a 62.2% margin of safety. 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.
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.
Visit Website →Xp Inc
FINANCIAL SERVICES · CAPITAL MARKETS · USA
XP Inc. offers financial products and services in Brazil. The company is headquartered in So Paulo, Brazil.
Visit Website →Compare with Other CAPITAL MARKETS Stocks
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