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ERIE vs. LPLA: A Head-to-Head Stock Comparison

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Here’s a clear look at ERIE and LPLA, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolERIELPLA
Company NameErie Indemnity CompanyLPL Financial Holdings Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryInsuranceCapital Markets
Market Capitalization16.53 billion USD24.98 billion USD
ExchangeNasdaqGSNasdaqGS
Listing DateOctober 2, 1995November 18, 2010
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ERIE and LPLA by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

ERIE vs. LPLA: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolERIELPLA
5-Day Price Return-0.62%-6.16%
13-Week Price Return-7.36%-18.01%
26-Week Price Return-23.07%-6.76%
52-Week Price Return-40.97%32.37%
Month-to-Date Return-0.62%-6.16%
Year-to-Date Return-23.30%-4.39%
10-Day Avg. Volume0.13M0.90M
3-Month Avg. Volume0.14M0.83M
3-Month Volatility25.54%32.33%
Beta0.400.60

Profitability

Return on Equity (TTM)

ERIE

30.53%

Insurance Industry

Max
30.96%
Q3
18.76%
Median
14.22%
Q1
10.34%
Min
1.73%

In the upper quartile for the Insurance industry, ERIE’s Return on Equity of 30.53% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

LPLA

32.17%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
Min
-4.25%

In the upper quartile for the Capital Markets industry, LPLA’s Return on Equity of 32.17% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ERIE vs. LPLA: A comparison of their Return on Equity (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Net Profit Margin (TTM)

ERIE

15.73%

Insurance Industry

Max
26.78%
Q3
14.69%
Median
9.87%
Q1
6.59%
Min
-3.51%

A Net Profit Margin of 15.73% places ERIE in the upper quartile for the Insurance industry, signifying strong profitability and more effective cost management than most of its peers.

LPLA

7.91%

Capital Markets Industry

Max
69.91%
Q3
37.24%
Median
24.30%
Q1
13.06%
Min
-15.18%

Falling into the lower quartile for the Capital Markets industry, LPLA’s Net Profit Margin of 7.91% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

ERIE vs. LPLA: A comparison of their Net Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Operating Profit Margin (TTM)

ERIE

17.49%

Insurance Industry

Max
34.52%
Q3
20.17%
Median
14.46%
Q1
9.62%
Min
-2.51%

In the Insurance industry, Operating Profit Margin is often not the primary measure of operational efficiency.

LPLA

12.86%

Capital Markets Industry

Max
84.86%
Q3
47.16%
Median
32.23%
Q1
18.65%
Min
-21.87%

LPLA’s Operating Profit Margin of 12.86% is in the lower quartile for the Capital Markets industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

ERIE vs. LPLA: A comparison of their Operating Profit Margin (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Profitability at a Glance

SymbolERIELPLA
Return on Equity (TTM)30.53%32.17%
Return on Assets (TTM)21.10%7.89%
Net Profit Margin (TTM)15.73%7.91%
Operating Profit Margin (TTM)17.49%12.86%
Gross Profit Margin (TTM)17.57%98.92%

Financial Strength

Current Ratio (MRQ)

ERIE

1.47

Insurance Industry

Max
2.97
Q3
1.37
Median
0.54
Q1
0.15
Min
0.00

For the Insurance industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

LPLA

3.05

Capital Markets Industry

Max
3.37
Q3
1.81
Median
1.01
Q1
0.56
Min
0.04

For the Capital Markets industry, the Current Ratio is often not the most suitable measure of short-term liquidity.

ERIE vs. LPLA: A comparison of their Current Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ERIE

0.00

Insurance Industry

Max
1.25
Q3
0.65
Median
0.34
Q1
0.23
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Insurance industry.

LPLA

1.44

Capital Markets Industry

Max
6.52
Q3
2.79
Median
0.96
Q1
0.28
Min
0.00

The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Capital Markets industry.

ERIE vs. LPLA: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Interest Coverage Ratio (TTM)

ERIE

538.86

Insurance Industry

Max
43.68
Q3
21.45
Median
9.67
Q1
3.55
Min
-5.73

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Insurance industry.

LPLA

6.08

Capital Markets Industry

Max
107.59
Q3
48.41
Median
10.85
Q1
4.56
Min
-36.26

The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Capital Markets industry.

ERIE vs. LPLA: A comparison of their Interest Coverage Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Financial Strength at a Glance

SymbolERIELPLA
Current Ratio (MRQ)1.473.05
Quick Ratio (MRQ)1.392.99
Debt-to-Equity Ratio (MRQ)0.001.44
Interest Coverage Ratio (TTM)538.866.08

Growth

Revenue Growth

ERIE vs. LPLA: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ERIE vs. LPLA: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ERIE

1.67%

Insurance Industry

Max
9.80%
Q3
5.18%
Median
3.58%
Q1
2.07%
Min
0.00%

ERIE’s Dividend Yield of 1.67% is in the lower quartile for the Insurance industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

LPLA

0.36%

Capital Markets Industry

Max
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
Min
0.00%

LPLA’s Dividend Yield of 0.36% is in the lower quartile for the Capital Markets industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ERIE vs. LPLA: A comparison of their Dividend Yield (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend Payout Ratio (TTM)

ERIE

39.35%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
53.26%
Q1
23.68%
Min
0.00%

ERIE’s Dividend Payout Ratio of 39.35% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

LPLA

8.17%

Capital Markets Industry

Max
199.38%
Q3
99.28%
Median
60.67%
Q1
32.00%
Min
0.00%

LPLA’s Dividend Payout Ratio of 8.17% is in the lower quartile for the Capital Markets industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

ERIE vs. LPLA: A comparison of their Dividend Payout Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Dividend at a Glance

SymbolERIELPLA
Dividend Yield (TTM)1.67%0.36%
Dividend Payout Ratio (TTM)39.35%8.17%

Valuation

Price-to-Earnings Ratio (TTM)

ERIE

23.57

Insurance Industry

Max
30.75
Q3
18.11
Median
12.67
Q1
9.66
Min
2.87

A P/E Ratio of 23.57 places ERIE in the upper quartile for the Insurance industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

LPLA

22.52

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

LPLA’s P/E Ratio of 22.52 is within the middle range for the Capital Markets industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ERIE vs. LPLA: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Sales Ratio (TTM)

ERIE

3.71

Insurance Industry

Max
3.41
Q3
1.88
Median
1.22
Q1
0.80
Min
0.23

With a P/S Ratio of 3.71, ERIE trades at a valuation that eclipses even the highest in the Insurance industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

LPLA

1.78

Capital Markets Industry

Max
14.65
Q3
7.29
Median
4.53
Q1
2.26
Min
0.04

In the lower quartile for the Capital Markets industry, LPLA’s P/S Ratio of 1.78 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

ERIE vs. LPLA: A comparison of their Price-to-Sales Ratio (TTM) against their respective Insurance and Capital Markets industry benchmarks.

Price-to-Book Ratio (MRQ)

ERIE

8.30

Insurance Industry

Max
4.57
Q3
2.56
Median
1.88
Q1
1.20
Min
0.17

At 8.30, ERIE’s P/B Ratio is at an extreme premium to the Insurance industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

LPLA

5.91

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

LPLA’s P/B Ratio of 5.91 is in the upper tier for the Capital Markets industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ERIE vs. LPLA: A comparison of their Price-to-Book Ratio (MRQ) against their respective Insurance and Capital Markets industry benchmarks.

Valuation at a Glance

SymbolERIELPLA
Price-to-Earnings Ratio (TTM)23.5722.52
Price-to-Sales Ratio (TTM)3.711.78
Price-to-Book Ratio (MRQ)8.305.91
Price-to-Free Cash Flow Ratio (TTM)26.1274.29