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

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

Company Profile

HDB trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, LPLA is a standard domestic listing.

SymbolHDBLPLA
Company NameHDFC Bank LimitedLPL Financial Holdings Inc.
CountryIndiaUnited States
GICS SectorFinancialsFinancials
GICS IndustryBanksCapital Markets
Market Capitalization191.80 billion USD28.43 billion USD
ExchangeNYSENasdaqGS
Listing DateJuly 20, 2001November 18, 2010
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of HDB 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.

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

Historical Performance at a Glance

SymbolHDBLPLA
5-Day Price Return0.42%-0.19%
13-Week Price Return3.27%-7.80%
26-Week Price Return15.82%-4.58%
52-Week Price Return21.77%60.46%
Month-to-Date Return-1.48%-10.22%
Year-to-Date Return12.20%8.82%
10-Day Avg. Volume6.79M0.69M
3-Month Avg. Volume9.72M0.71M
3-Month Volatility12.41%29.73%
Beta-0.120.66

Profitability

Return on Equity (TTM)

HDB

13.78%

Banks Industry

Max
26.37%
Q3
15.92%
Median
12.25%
Q1
8.69%
Min
0.15%

HDB’s Return on Equity of 13.78% is on par with the norm for the Banks industry, indicating its profitability relative to shareholder equity is typical for the sector.

LPLA

32.17%

Capital Markets Industry

Max
38.97%
Q3
21.61%
Median
13.77%
Q1
8.31%
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.

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

Net Profit Margin (TTM)

HDB

32.49%

Banks Industry

Max
54.20%
Q3
35.70%
Median
28.97%
Q1
22.53%
Min
6.98%

HDB’s Net Profit Margin of 32.49% is aligned with the median group of its peers in the Banks industry. This indicates its ability to convert revenue into profit is typical for the sector.

LPLA

7.91%

Capital Markets Industry

Max
66.67%
Q3
35.11%
Median
23.49%
Q1
13.63%
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.

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

Operating Profit Margin (TTM)

HDB

42.04%

Banks Industry

Max
63.35%
Q3
44.59%
Median
37.24%
Q1
28.25%
Min
13.37%

HDB’s Operating Profit Margin of 42.04% is around the midpoint for the Banks industry, indicating that its efficiency in managing core business operations is typical for the sector.

LPLA

12.86%

Capital Markets Industry

Max
86.40%
Q3
46.46%
Median
32.80%
Q1
18.32%
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.

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

Profitability at a Glance

SymbolHDBLPLA
Return on Equity (TTM)13.78%32.17%
Return on Assets (TTM)1.64%7.89%
Net Profit Margin (TTM)32.49%7.91%
Operating Profit Margin (TTM)42.04%12.86%
Gross Profit Margin (TTM)--98.92%

Financial Strength

Current Ratio (MRQ)

HDB

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

LPLA

3.05

Capital Markets Industry

Max
3.76
Q3
1.89
Median
1.01
Q1
0.54
Min
-0.41

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

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

Debt-to-Equity Ratio (MRQ)

HDB

1.11

Banks Industry

Max
4.75
Q3
2.62
Median
1.02
Q1
0.39
Min
0.00

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

LPLA

1.44

Capital Markets Industry

Max
6.62
Q3
2.84
Median
1.02
Q1
0.32
Min
0.00

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

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

Interest Coverage Ratio (TTM)

HDB

--

Banks Industry

Max
--
Q3
--
Median
--
Q1
--
Min
--

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

LPLA

6.08

Capital Markets Industry

Max
126.03
Q3
60.98
Median
11.77
Q1
4.95
Min
-36.26

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

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

Financial Strength at a Glance

SymbolHDBLPLA
Current Ratio (MRQ)--3.05
Quick Ratio (MRQ)--2.99
Debt-to-Equity Ratio (MRQ)1.111.44
Interest Coverage Ratio (TTM)--6.08

Growth

Revenue Growth

HDB 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

HDB 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)

HDB

0.97%

Banks Industry

Max
10.27%
Q3
5.83%
Median
3.81%
Q1
2.50%
Min
0.00%

HDB’s Dividend Yield of 0.97% is in the lower quartile for the Banks industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

LPLA

0.32%

Capital Markets Industry

Max
10.26%
Q3
4.86%
Median
2.78%
Q1
1.22%
Min
0.00%

LPLA’s Dividend Yield of 0.32% 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.

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

Dividend Payout Ratio (TTM)

HDB

83.17%

Banks Industry

Max
147.07%
Q3
80.55%
Median
54.40%
Q1
35.71%
Min
0.00%

HDB’s Dividend Payout Ratio of 83.17% is in the upper quartile for the Banks industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

LPLA

8.17%

Capital Markets Industry

Max
200.72%
Q3
101.92%
Median
57.97%
Q1
32.36%
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.

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

Dividend at a Glance

SymbolHDBLPLA
Dividend Yield (TTM)0.97%0.32%
Dividend Payout Ratio (TTM)83.17%8.17%

Valuation

Price-to-Earnings Ratio (TTM)

HDB

21.65

Banks Industry

Max
20.05
Q3
12.65
Median
10.21
Q1
7.54
Min
2.74

At 21.65, HDB’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Banks industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

LPLA

25.14

Capital Markets Industry

Max
58.89
Q3
31.00
Median
18.54
Q1
12.09
Min
5.24

LPLA’s P/E Ratio of 25.14 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.

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

Price-to-Sales Ratio (TTM)

HDB

6.77

Banks Industry

Max
5.06
Q3
2.98
Median
2.24
Q1
1.59
Min
0.45

The P/S Ratio is often not a primary valuation tool in the Banks industry.

LPLA

1.99

Capital Markets Industry

Max
14.49
Q3
7.41
Median
4.68
Q1
2.25
Min
0.04

In the lower quartile for the Capital Markets industry, LPLA’s P/S Ratio of 1.99 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.

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

Price-to-Book Ratio (MRQ)

HDB

2.83

Banks Industry

Max
2.18
Q3
1.36
Median
1.09
Q1
0.81
Min
0.20

At 2.83, HDB’s P/B Ratio is at an extreme premium to the Banks 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
9.48
Q3
4.94
Median
2.42
Q1
1.21
Min
0.38

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.

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

Valuation at a Glance

SymbolHDBLPLA
Price-to-Earnings Ratio (TTM)21.6525.14
Price-to-Sales Ratio (TTM)6.771.99
Price-to-Book Ratio (MRQ)2.835.91
Price-to-Free Cash Flow Ratio (TTM)12.4182.92