Seek Returns logo

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

Updated on

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

Company Profile

SymbolLPLAMMC
Company NameLPL Financial Holdings Inc.Marsh & McLennan Companies, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsInsurance
Market Capitalization29.41 billion USD89.94 billion USD
ExchangeNasdaqGSNYSE
Listing DateNovember 18, 2010February 21, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LPLA and MMC 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.

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

Historical Performance at a Glance

SymbolLPLAMMC
5-Day Price Return-1.27%2.63%
13-Week Price Return5.59%-11.78%
26-Week Price Return-3.24%-18.30%
52-Week Price Return17.77%-19.01%
Month-to-Date Return-1.78%2.62%
Year-to-Date Return13.50%-13.94%
10-Day Avg. Volume0.65M2.80M
3-Month Avg. Volume0.89M2.64M
3-Month Volatility35.13%23.00%
Beta0.600.76

Profitability

Return on Equity (TTM)

LPLA

20.61%

Capital Markets Industry

Max
41.61%
Q3
22.56%
Median
13.62%
Q1
9.23%
Min
-4.25%

LPLA’s Return on Equity of 20.61% is on par with the norm for the Capital Markets industry, indicating its profitability relative to shareholder equity is typical for the sector.

MMC

28.30%

Insurance Industry

Max
31.64%
Q3
19.22%
Median
14.77%
Q1
10.48%
Min
2.20%

In the upper quartile for the Insurance industry, MMC’s Return on Equity of 28.30% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

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

Net Profit Margin (TTM)

LPLA

5.35%

Capital Markets Industry

Max
69.91%
Q3
36.88%
Median
24.30%
Q1
13.14%
Min
-6.20%

Falling into the lower quartile for the Capital Markets industry, LPLA’s Net Profit Margin of 5.35% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

MMC

15.60%

Insurance Industry

Max
28.47%
Q3
15.63%
Median
10.40%
Q1
6.94%
Min
-3.51%

MMC’s Net Profit Margin of 15.60% is aligned with the median group of its peers in the Insurance industry. This indicates its ability to convert revenue into profit is typical for the sector.

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

Operating Profit Margin (TTM)

LPLA

9.46%

Capital Markets Industry

Max
83.68%
Q3
47.64%
Median
32.36%
Q1
19.28%
Min
0.30%

LPLA’s Operating Profit Margin of 9.46% 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.

MMC

23.23%

Insurance Industry

Max
35.59%
Q3
21.31%
Median
14.99%
Q1
10.34%
Min
-2.51%

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

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

Profitability at a Glance

SymbolLPLAMMC
Return on Equity (TTM)20.61%28.30%
Return on Assets (TTM)5.31%7.15%
Net Profit Margin (TTM)5.35%15.60%
Operating Profit Margin (TTM)9.46%23.23%
Gross Profit Margin (TTM)98.94%--

Financial Strength

Current Ratio (MRQ)

LPLA

2.38

Capital Markets Industry

Max
3.43
Q3
1.76
Median
1.00
Q1
0.60
Min
0.04

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

MMC

1.12

Insurance Industry

Max
2.64
Q3
1.19
Median
0.53
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 vs. MMC: A comparison of their Current Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LPLA

1.51

Capital Markets Industry

Max
6.12
Q3
2.78
Median
0.96
Q1
0.31
Min
0.00

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

MMC

1.29

Insurance Industry

Max
1.10
Q3
0.65
Median
0.35
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 vs. MMC: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Interest Coverage Ratio (TTM)

LPLA

6.08

Capital Markets Industry

Max
107.59
Q3
50.42
Median
10.94
Q1
4.37
Min
-36.26

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

MMC

10.06

Insurance Industry

Max
49.59
Q3
22.05
Median
9.63
Q1
3.42
Min
-5.73

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

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

Financial Strength at a Glance

SymbolLPLAMMC
Current Ratio (MRQ)2.381.12
Quick Ratio (MRQ)2.331.12
Debt-to-Equity Ratio (MRQ)1.511.29
Interest Coverage Ratio (TTM)6.0810.06

Growth

Revenue Growth

LPLA vs. MMC: 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

LPLA vs. MMC: 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)

LPLA

0.31%

Capital Markets Industry

Max
8.63%
Q3
4.88%
Median
2.72%
Q1
1.41%
Min
0.00%

LPLA’s Dividend Yield of 0.31% 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.

MMC

1.85%

Insurance Industry

Max
9.43%
Q3
5.10%
Median
3.57%
Q1
2.02%
Min
0.00%

MMC’s Dividend Yield of 1.85% 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 vs. MMC: A comparison of their Dividend Yield (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Dividend Payout Ratio (TTM)

LPLA

8.17%

Capital Markets Industry

Max
188.84%
Q3
96.52%
Median
61.58%
Q1
31.74%
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.

MMC

40.17%

Insurance Industry

Max
169.40%
Q3
85.57%
Median
50.55%
Q1
22.12%
Min
0.00%

MMC’s Dividend Payout Ratio of 40.17% is within the typical range for the Insurance industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolLPLAMMC
Dividend Yield (TTM)0.31%1.85%
Dividend Payout Ratio (TTM)8.17%40.17%

Valuation

Price-to-Earnings Ratio (TTM)

LPLA

35.61

Capital Markets Industry

Max
47.53
Q3
28.81
Median
16.62
Q1
12.06
Min
5.71

A P/E Ratio of 35.61 places LPLA in the upper quartile for the Capital Markets industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

MMC

21.70

Insurance Industry

Max
27.66
Q3
17.29
Median
12.59
Q1
9.86
Min
3.13

A P/E Ratio of 21.70 places MMC 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 vs. MMC: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Capital Markets and Insurance industry benchmarks.

Price-to-Sales Ratio (TTM)

LPLA

1.91

Capital Markets Industry

Max
13.23
Q3
6.65
Median
4.40
Q1
2.22
Min
0.03

In the lower quartile for the Capital Markets industry, LPLA’s P/S Ratio of 1.91 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.

MMC

3.39

Insurance Industry

Max
3.39
Q3
1.95
Median
1.25
Q1
0.83
Min
0.22

MMC’s P/S Ratio of 3.39 is in the upper echelon for the Insurance industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

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

Price-to-Book Ratio (MRQ)

LPLA

5.28

Capital Markets Industry

Max
10.83
Q3
5.27
Median
2.66
Q1
1.34
Min
0.37

LPLA’s P/B Ratio of 5.28 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.

MMC

6.52

Insurance Industry

Max
4.36
Q3
2.47
Median
1.77
Q1
1.18
Min
0.17

At 6.52, MMC’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 vs. MMC: A comparison of their Price-to-Book Ratio (MRQ) against their respective Capital Markets and Insurance industry benchmarks.

Valuation at a Glance

SymbolLPLAMMC
Price-to-Earnings Ratio (TTM)35.6121.70
Price-to-Sales Ratio (TTM)1.913.39
Price-to-Book Ratio (MRQ)5.286.52
Price-to-Free Cash Flow Ratio (TTM)87.5216.28