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LPLA vs. SCHW: LPL Financial vs. Charles Schwab Stock Comparison

How do LPL Financial (LPLA) and Charles Schwab (SCHW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

LPL Financial (LPLA) and Charles Schwab (SCHW) are both classified in the Investment Banking & Brokerage sub-industry within the broader Capital Markets industry, placing them in the closest GICS peer bucket.

Company profile comparison for LPL Financial (LPLA) and Charles Schwab (SCHW)
Profile ItemLPLASCHW
NameLPL Financial Holdings Inc.The Charles Schwab Corporation
Country/RegionUnited StatesUnited States
GICS SectorFinancialsFinancials
GICS Industry GroupFinancial ServicesFinancial Services
GICS IndustryCapital MarketsCapital Markets
GICS Sub-IndustryInvestment Banking & BrokerageInvestment Banking & Brokerage
Market Capitalization23.01 billion USD158.22 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateNovember 18, 2010September 22, 1987
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LPLA
SCHW
GSPC
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LPL Financial (LPLA) vs. Charles Schwab (SCHW), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for LPL Financial (LPLA) and Charles Schwab (SCHW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for LPL Financial (LPLA) and Charles Schwab (SCHW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Total Return (1Y)-17.27%-0.80%
Total Return (3Y, Annualized)11.10%21.35%
Total Return (5Y, Annualized)13.92%4.31%

Risk Profile

Drawdown History

LPLA
SCHW
GSPC
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LPL Financial (LPLA) vs. Charles Schwab (SCHW), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for LPL Financial (LPLA) and Charles Schwab (SCHW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Volatility (1Y, Annualized)39.22%26.01%
Beta (5Y)0.520.74
Max Drawdown (5Y)-33.18%-49.70%
Avg. Volume (3M)855.76K8.22M

Risk-Adjusted Performance

Risk-Return Positioning

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LPLA and SCHW are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Sharpe Ratio (1Y)-0.55-0.20
Sortino Ratio (1Y)-0.70-0.26

Profitability

ROE (TTM)

LPL Financial (LPLA) at 25.66% sits in the top ROE quartile, while Charles Schwab (SCHW) at 21.12% is closer to the peer norm — stronger capital efficiency for LPLA.

LPLA

Financial Services industry group

25.66%

Max
44.78%
LPLA
25.66%
Q3
21.85%
Median
12.91%
Q1
4.48%
Min
-18.71%

SCHW

Financial Services industry group

21.12%

Max
44.78%
Q3
21.85%
SCHW
21.12%
Median
12.91%
Q1
4.48%
Min
-18.71%
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their ROE against the Financial Services industry group benchmark.

Net Margin (TTM)

Charles Schwab (SCHW) at 39.33% retains a top-quartile share of revenue as profit, ahead of LPL Financial (LPLA) at 6.97%, which keeps about the industry-typical share.

LPLA

Financial Services industry group

6.97%

Max
62.84%
Q3
28.05%
Median
15.36%
LPLA
6.97%
Q1
4.82%
Min
-28.52%

SCHW

Financial Services industry group

39.33%

Max
62.84%
SCHW
39.33%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their net margin against the Financial Services industry group benchmark.

Operating Margin (TTM)

Charles Schwab (SCHW) at 52.67% runs core operations around its industry’s norm, while LPL Financial (LPLA) at 10.85% operates in the bottom quartile.

LPLA

Financial Services industry group

10.85%

Max
107.33%
Q3
55.90%
Median
30.09%
Q1
14.60%
LPLA
10.85%
Min
-44.34%

SCHW

Financial Services industry group

52.67%

Max
107.33%
Q3
55.90%
SCHW
52.67%
Median
30.09%
Q1
14.60%
Min
-44.34%
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their operating margin against the Financial Services industry group benchmark.

Profitability Metrics

Profitability metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
ROE (TTM)25.66%21.12%
ROA (TTM)7.35%2.16%
Net Margin (TTM)6.97%39.33%
Operating Margin (TTM)10.85%52.67%
Gross Margin (TTM)----

Growth

Revenue Growth

LPL Financial (LPLA) at 37.18% sits in the top revenue growth quartile, while Charles Schwab (SCHW) at 22.01% is closer to the peer norm — faster top-line expansion for LPLA.

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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Charles Schwab (SCHW) at 55.52% sits in the top EPS growth quartile, while LPL Financial (LPLA) at -22.17% is closer to the peer norm — faster per-share earnings growth for SCHW.

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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Revenue Growth (YoY)37.18%22.01%
Revenue Growth (3Y CAGR)25.47%4.83%
EPS Growth (YoY)-22.17%55.52%
EPS Growth (3Y CAGR)1.64%9.93%

Financial Strength

Current Ratio (MRQ)

current ratio doesn’t apply on either side: LPL Financial (LPLA) in Financial Services and Charles Schwab (SCHW) in Financial Services both report balance sheets without a current/non-current split, so their short-term liquidity is better judged through regulatory and funding measures.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for both: LPL Financial (LPLA) in Financial Services and Charles Schwab (SCHW) in Financial Services run businesses where balance-sheet leverage is part of the model, so capital-adequacy and funding measures are the better gauges of balance-sheet risk.

Financial Strength Metrics

Financial strength metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Both LPL Financial (LPLA) at 0.40% and Charles Schwab (SCHW) at 1.33% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.

LPLA

Financial Services industry group

0.40%

Max
9.77%
Q3
3.92%
Median
1.09%
LPLA
0.40%
Q1
0.00%
Min
0.00%

SCHW

Financial Services industry group

1.33%

Max
9.77%
Q3
3.92%
SCHW
1.33%
Median
1.09%
Q1
0.00%
Min
0.00%
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their dividend yield against the Financial Services industry group benchmark.

Dividend Payout Ratio (TTM)

Both LPL Financial (LPLA) at 6.88% and Charles Schwab (SCHW) at 21.03% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

LPLA

Financial Services industry group

6.88%

Max
241.07%
Q3
97.36%
Median
25.77%
LPLA
6.88%
Q1
0.00%
Min
0.00%

SCHW

Financial Services industry group

21.03%

Max
241.07%
Q3
97.36%
Median
25.77%
SCHW
21.03%
Q1
0.00%
Min
0.00%
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their payout ratio against the Financial Services industry group benchmark.

Dividend Metrics

Dividend metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
Dividend Yield (TTM)0.40%1.33%
Dividend Payout Ratio (TTM)6.88%21.03%

Valuation

P/E Ratio (TTM)

Both LPL Financial (LPLA) at 16.93 and Charles Schwab (SCHW) at 15.64 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

LPLA

Financial Services industry group

16.93

Max
45.85
Q3
24.64
LPLA
16.93
Median
15.37
Q1
9.68
Min
0.16

SCHW

Financial Services industry group

15.64

Max
45.85
Q3
24.64
SCHW
15.64
Median
15.37
Q1
9.68
Min
0.16
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their P/E ratio against the Financial Services industry group benchmark.

P/S Ratio (TTM)

LPL Financial (LPLA) at 1.15 looks cheap on sales in the lower P/S ratio quartile, while Charles Schwab (SCHW) at 5.85 looks rich in the upper quartile — a clear gap in price per dollar of revenue.

LPLA

Financial Services industry group

1.15

Max
9.23
Q3
4.57
Median
2.72
Q1
1.28
LPLA
1.15
Min
-0.55

SCHW

Financial Services industry group

5.85

Max
9.23
SCHW
5.85
Q3
4.57
Median
2.72
Q1
1.28
Min
-0.55
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their P/S ratio against the Financial Services industry group benchmark.

P/B Ratio (MRQ)

Charles Schwab (SCHW) at 3.08 is valued about in line with its industry on P/B ratio, while LPL Financial (LPLA) at 3.98 carries an above-peer premium to book — LPLA is pricier on assets.

LPLA

Financial Services industry group

3.98

Max
7.79
LPLA
3.98
Q3
3.63
Median
1.57
Q1
0.81
Min
-0.39

SCHW

Financial Services industry group

3.08

Max
7.79
Q3
3.63
SCHW
3.08
Median
1.57
Q1
0.81
Min
-0.39
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LPL Financial (LPLA) vs. Charles Schwab (SCHW): A comparison of their P/B ratio against the Financial Services industry group benchmark.

Valuation Metrics

Valuation metrics for LPL Financial (LPLA) and Charles Schwab (SCHW)
MetricLPLASCHW
P/E Ratio (TTM)16.9315.64
P/S Ratio (TTM)1.155.85
P/B Ratio (MRQ)3.983.08
Free Cash Flow Yield (TTM)----