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

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

Company Profile

SymbolLPLARKT
Company NameLPL Financial Holdings Inc.Rocket Companies, Inc.
CountryUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS IndustryCapital MarketsFinancial Services
Market Capitalization30.04 billion USD48.09 billion USD
ExchangeNasdaqGSNYSE
Listing DateNovember 18, 2010August 6, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LPLA and RKT 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. RKT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolLPLARKT
5-Day Price Return0.23%1.91%
13-Week Price Return1.27%-0.18%
26-Week Price Return12.20%46.99%
52-Week Price Return23.11%6.15%
Month-to-Date Return-0.52%2.52%
Year-to-Date Return14.96%51.69%
10-Day Avg. Volume1.04M49.29M
3-Month Avg. Volume0.90M32.70M
3-Month Volatility36.30%54.26%
Beta0.602.31

Profitability

Return on Equity (TTM)

LPLA

20.61%

Capital Markets Industry

Max
38.97%
Q3
22.24%
Median
13.52%
Q1
8.61%
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.

RKT

-2.32%

Financial Services Industry

Max
39.28%
Q3
18.88%
Median
9.97%
Q1
4.03%
Min
-10.25%

RKT has a negative Return on Equity of -2.32%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

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

Net Profit Margin (TTM)

LPLA

5.35%

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 5.35% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

RKT

-1.67%

Financial Services Industry

Max
52.16%
Q3
25.35%
Median
12.68%
Q1
6.11%
Min
-11.69%

RKT has a negative Net Profit Margin of -1.67%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

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

Operating Profit Margin (TTM)

LPLA

9.46%

Capital Markets Industry

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

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.

RKT

18.57%

Financial Services Industry

Max
75.57%
Q3
37.78%
Median
19.09%
Q1
10.04%
Min
-19.42%

RKT’s Operating Profit Margin of 18.57% is around the midpoint for the Financial Services industry, indicating that its efficiency in managing core business operations is typical for the sector.

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

Profitability at a Glance

SymbolLPLARKT
Return on Equity (TTM)20.61%-2.32%
Return on Assets (TTM)5.31%-0.36%
Net Profit Margin (TTM)5.35%-1.67%
Operating Profit Margin (TTM)9.46%18.57%
Gross Profit Margin (TTM)98.94%--

Financial Strength

Current Ratio (MRQ)

LPLA

2.38

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.

RKT

0.42

Financial Services Industry

Max
4.83
Q3
2.70
Median
1.44
Q1
0.86
Min
0.01

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

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

Debt-to-Equity Ratio (MRQ)

LPLA

1.51

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.

RKT

2.48

Financial Services Industry

Max
5.07
Q3
2.14
Median
0.66
Q1
0.12
Min
0.00

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

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

Interest Coverage Ratio (TTM)

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.

RKT

2.42

Financial Services Industry

Max
136.23
Q3
56.08
Median
6.55
Q1
2.01
Min
-33.27

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

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

Financial Strength at a Glance

SymbolLPLARKT
Current Ratio (MRQ)2.380.42
Quick Ratio (MRQ)2.330.42
Debt-to-Equity Ratio (MRQ)1.512.48
Interest Coverage Ratio (TTM)6.082.42

Growth

Revenue Growth

LPLA vs. RKT: 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. RKT: 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
9.02%
Q3
4.54%
Median
2.55%
Q1
1.27%
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.

RKT

0.00%

Financial Services Industry

Max
8.12%
Q3
3.37%
Median
1.70%
Q1
0.00%
Min
0.00%

RKT currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.

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

Dividend Payout Ratio (TTM)

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.

RKT

0.00%

Financial Services Industry

Max
132.10%
Q3
64.32%
Median
18.23%
Q1
0.00%
Min
0.00%

RKT has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.

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

Dividend at a Glance

SymbolLPLARKT
Dividend Yield (TTM)0.31%0.00%
Dividend Payout Ratio (TTM)8.17%0.00%

Valuation

Price-to-Earnings Ratio (TTM)

LPLA

35.88

Capital Markets Industry

Max
51.69
Q3
29.42
Median
17.58
Q1
12.55
Min
5.59

A P/E Ratio of 35.88 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.

RKT

--

Financial Services Industry

Max
45.81
Q3
30.21
Median
16.29
Q1
10.14
Min
0.70

P/E Ratio data for RKT is currently unavailable.

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

Price-to-Sales Ratio (TTM)

LPLA

1.92

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 1.92 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.

RKT

7.87

Financial Services Industry

Max
10.88
Q3
5.34
Median
2.64
Q1
1.24
Min
0.06

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

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

Price-to-Book Ratio (MRQ)

LPLA

5.28

Capital Markets Industry

Max
10.83
Q3
5.12
Median
2.66
Q1
1.19
Min
0.37

LPLA’s P/B Ratio of 5.28 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.

RKT

4.61

Financial Services Industry

Max
7.93
Q3
3.78
Median
1.49
Q1
0.88
Min
0.08

RKT’s P/B Ratio of 4.61 is in the upper tier for the Financial Services 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.

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

Valuation at a Glance

SymbolLPLARKT
Price-to-Earnings Ratio (TTM)35.88--
Price-to-Sales Ratio (TTM)1.927.87
Price-to-Book Ratio (MRQ)5.284.61
Price-to-Free Cash Flow Ratio (TTM)88.2026.31