AXP vs. LPLA: A Head-to-Head Stock Comparison
UpdatedHere’s a clear look at AXP and LPLA, comparing key factors like performance, valuation metrics, dividends, and financial strength.
Company Overview
AXP’s market capitalization of 211.91 billion USD is substantially larger than LPLA’s 31.11 billion USD, indicating a significant difference in their market valuations.
AXP’s beta of 1.25 points to significantly higher volatility compared to LPLA (beta: 0.66), suggesting AXP has greater potential for both gains and losses relative to market movements.
| Symbol | AXP | LPLA |
|---|---|---|
| Company Name | American Express Company | LPL Financial Holdings Inc. |
| Country | US | US |
| Sector | Financial Services | Financial Services |
| Industry | Financial - Credit Services | Financial - Capital Markets |
| CEO | Mr. Stephen Joseph Squeri | Mr. Richard Steinmeier |
| Price | 302.47 USD | 388.96 USD |
| Market Cap | 211.91 billion USD | 31.11 billion USD |
| Beta | 1.25 | 0.66 |
| Exchange | NYSE | NASDAQ |
| IPO Date | June 1, 1972 | November 18, 2010 |
| ADR | No | No |
Performance Comparison
This chart compares the performance of AXP and LPLA over the past year by tracking the growth of an initial $10,000 investment in each (starting one year ago).
Data is adjusted for dividends and splits.
- AXP: $13160.02 (31.60%)
- LPLA: $13907.32 (39.07%)
Valuation Metrics Comparison
This section compares the market valuation of AXP and LPLA. Key takeaways regarding their valuation, when viewed within their industry context, are presented in the commentary that follows.
- LPLA’s Price-to-Earnings (P/E) ratio of 26.66 is very high. This signifies that its stock is trading at a premium, likely reflecting market optimism about its future growth, though it also implies a higher risk if these growth expectations are not met.
- LPLA’s Price-to-Book (P/B) ratio of 9.29 is very high. This suggests that investors are valuing its assets and growth potential at a considerable premium to its stated book value, often due to strong return on equity, significant intangible assets, or optimistic growth forecasts.
| Symbol | AXP | LPLA |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 20.63 | 26.66 |
| Forward PEG Ratio (TTM) | 1.94 | 1.29 |
| Price-to-Sales Ratio (P/S, TTM) | 2.81 | 2.35 |
| Price-to-Book Ratio (P/B, TTM) | 6.80 | 9.29 |
| EV-to-EBITDA (TTM) | 14.36 | 12.45 |
| EV-to-Sales (TTM) | 2.82 | 2.26 |
Dividend Comparison
AXP’s dividend yield of 0.97% is notably higher than LPLA’s 0.31%, suggesting a stronger emphasis on returning cash to shareholders.
| Symbol | AXP | LPLA |
|---|---|---|
| Dividend Yield (TTM) | 0.97% | 0.31% |
Financial Strength Metrics Comparison
Explore the financial strength details for AXP and LPLA in the table below.
| Symbol | AXP | LPLA |
|---|---|---|
| Current Ratio (TTM) | 0.32 | -- |
| Quick Ratio (TTM) | 0.32 | -- |
| Debt-to-Equity Ratio (TTM) | 1.69 | -- |
| Debt-to-Asset Ratio (TTM) | 0.19 | -- |
| Net Debt-to-EBITDA Ratio (TTM) | 0.04 | -0.51 |
| Interest Coverage Ratio (TTM) | 1.59 | 4.93 |