Comprehensive Stock Comparison
Compare Lazard Ltd (LAZ) vs The Charles Schwab Corporation (SCHW) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | LAZ | 21.0% revenue growth vs SCHW's 1.9% |
| Value | LAZ | Lower P/E (13.9x vs 16.2x) |
| Quality / Margins | SCHW | 22.9% net margin vs LAZ's 9.1% |
| Stability / Safety | SCHW | Beta 0.88 vs LAZ's 1.72, lower leverage |
| Dividends | LAZ | 3.5% yield, vs SCHW's 1.3% |
| Momentum (1Y) | SCHW | +21.1% vs LAZ's +4.9% |
| Efficiency (ROA) | SCHW | 232.8% ROA vs LAZ's 5.9%, ROIC 6.0% vs 10.2% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Lazard is a global financial advisory and asset management firm that provides strategic advice on mergers, restructurings, and capital markets while managing investment portfolios for institutional and private clients. It generates revenue primarily through advisory fees from its Financial Advisory segment (roughly 60% of revenue) and management fees from its Asset Management business (roughly 40%). The company's key advantage lies in its century-old brand reputation, deep client relationships across governments and corporations worldwide, and its elite advisory teams that command premium fees for complex transactions.
Charles Schwab is a major financial services firm that operates as a discount brokerage, wealth manager, and bank for individual investors and financial advisors. It generates revenue primarily from net interest income on client cash balances (roughly 50%), asset management fees on its proprietary funds and advisory services, and trading commissions. The company's key competitive advantage is its massive scale in client assets—over $8 trillion—which creates a powerful network effect and allows it to offer low-cost services while maintaining profitability.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
LAZ leads in 3 of 6 categories (Valuation Metrics, Profitability & Efficiency). SCHW leads in 2 (Financial Metrics, Risk & Volatility). 1 tied.
Financial Metrics (TTM)
SCHW is the larger business by revenue, generating $26.0B annually — 8.4x LAZ's $3.1B. SCHW is the more profitable business, keeping 22.9% of every revenue dollar as net income compared to LAZ's 9.1%.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| RevenueTrailing 12 months | $3.1B | $26.0B |
| EBITDAEarnings before interest/tax | $384M | $12.8B |
| Net IncomeAfter-tax profit | $273M | $8.9B |
| Free Cash FlowCash after capex | $468M | $9.7B |
| Gross MarginGross profit ÷ Revenue | +35.1% | +75.4% |
| Operating MarginEBIT ÷ Revenue | +12.5% | +29.6% |
| Net MarginNet income ÷ Revenue | +9.1% | +22.9% |
| FCF MarginFCF ÷ Revenue | +22.6% | +7.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -34.3% | +41.5% |
Valuation Metrics
At 18.9x trailing earnings, LAZ trades at a 41% valuation discount to SCHW's 31.8x P/E. Adjusting for growth (PEG ratio), LAZ offers better value at 9.97x vs SCHW's 13.91x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| Market CapShares × price | $4.8B | $169.2B |
| Enterprise ValueMkt cap + debt − cash | $5.6B | $172.2B |
| Trailing P/EPrice ÷ TTM EPS | 18.88x | 31.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 13.85x | 16.22x |
| PEG RatioP/E ÷ EPS growth rate | 9.97x | 13.91x |
| EV / EBITDAEnterprise value multiple | 13.32x | 18.87x |
| Price / SalesMarket cap ÷ Revenue | 1.54x | 6.51x |
| Price / BookPrice ÷ Book value/share | 6.77x | 3.61x |
| Price / FCFMarket cap ÷ FCF | 6.81x | 82.52x |
Profitability & Efficiency
SCHW delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $29 for LAZ. SCHW carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to LAZ's 2.87x. On the Piotroski fundamental quality scale (0–9), LAZ scores 8/9 vs SCHW's 7/9, reflecting strong financial health.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| ROE (TTM)Return on equity | +28.6% | +2.9% |
| ROA (TTM)Return on assets | +5.9% | +2.3% |
| ROICReturn on invested capital | +10.2% | +6.0% |
| ROCEReturn on capital employed | +10.3% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 8 | 7 |
| Debt / EquityFinancial leverage | 2.87x | 0.93x |
| Net DebtTotal debt minus cash | $884M | $3.1B |
| Cash & Equiv.Liquid assets | $1.3B | $42.1B |
| Total DebtShort + long-term debt | $2.2B | $45.1B |
| Interest CoverageEBIT ÷ Interest expense | 5.01x | 3.05x |
Total Returns (with DRIP)
A $10,000 investment in SCHW five years ago would be worth $15,597 today (with dividends reinvested), compared to $14,919 for LAZ. Over the past 12 months, SCHW leads with a +21.1% total return vs LAZ's +4.9%. The 3-year compound annual growth rate (CAGR) favors LAZ at 14.9% vs SCHW's 8.1% — a key indicator of consistent wealth creation.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| YTD ReturnYear-to-date | +2.7% | -6.0% |
| 1-Year ReturnPast 12 months | +4.9% | +21.1% |
| 3-Year ReturnCumulative with dividends | +51.5% | +26.2% |
| 5-Year ReturnCumulative with dividends | +49.2% | +56.0% |
| 10-Year ReturnCumulative with dividends | +103.8% | +309.4% |
| CAGR (3Y)Annualised 3-year return | +14.9% | +8.1% |
Risk & Volatility
SCHW is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than LAZ's 1.72 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.72x | 0.88x |
| 52-Week HighHighest price in past year | $58.75 | $107.50 |
| 52-Week LowLowest price in past year | $31.97 | $65.88 |
| % of 52W HighCurrent price vs 52-week peak | +86.1% | +88.6% |
| RSI (14)Momentum oscillator 0–100 | 51.7 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 807K | 9.0M |
Analyst Outlook
Wall Street rates LAZ as "Buy" and SCHW as "Buy". Consensus price targets imply 29.0% upside for SCHW (target: $123) vs 8.0% for LAZ (target: $55). For income investors, LAZ offers the higher dividend yield at 3.46% vs SCHW's 1.30%.
| Metric | LAZLazard Ltd | SCHWThe Charles Schwa… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $54.67 | $122.78 |
| # AnalystsCovering analysts | 28 | 50 |
| Dividend YieldAnnual dividend ÷ price | +3.5% | +1.3% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $1.75 | $1.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.3% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Lazard Ltd (LAZ) | 100 | 146.04 | +46.0% |
| The Charles Schwab … (SCHW) | 100 | 274.6 | +174.6% |
The Charles Schwab … (SCHW) returned +56% over 5 years vs Lazard Ltd (LAZ)'s +49%. A $10,000 investment in SCHW 5 years ago would be worth $15,597 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lazard Ltd (LAZ) | $2.4B | $3.1B | +28.6% |
| The Charles Schwab … (SCHW) | $6.5B | $26.0B | +299.9% |
Lazard Ltd's revenue grew from $2.4B (2015) to $3.1B (2024) — a 2.8% CAGR. The Charles Schwab Corporation's revenue grew from $6.5B (2015) to $26.0B (2024) — a 16.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lazard Ltd (LAZ) | 41.1% | 9.1% | -77.9% |
| The Charles Schwab … (SCHW) | 22.3% | 22.9% | +2.7% |
Lazard Ltd's net margin went from 41% (2015) to 9% (2024). The Charles Schwab Corporation's net margin went from 22% (2015) to 23% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| Lazard Ltd (LAZ) | 27.5 | 19.2 | -30.2% |
| The Charles Schwab … (SCHW) | 31.9 | 24.8 | -22.3% |
Lazard Ltd has traded in a 9x–28x P/E range over 7 years; current trailing P/E is ~19x. The Charles Schwab Corporation has traded in a 17x–32x P/E range over 8 years; current trailing P/E is ~32x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| Lazard Ltd (LAZ) | 7.4 | 2.68 | -63.8% |
| The Charles Schwab … (SCHW) | 1.03 | 2.99 | +190.3% |
Lazard Ltd's EPS grew from $7.40 (2015) to $2.68 (2024) — a -11% CAGR. The Charles Schwab Corporation's EPS grew from $1.03 (2015) to $2.99 (2024) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
Lazard Ltd generated $697M FCF in 2024 (-16% vs 2021). The Charles Schwab Corporation generated $2B FCF in 2024 (+71% vs 2021).
LAZ vs SCHW: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LAZ or SCHW a better buy right now?
Lazard Ltd (LAZ) offers the better valuation at 18.9x trailing P/E (13.9x forward), making it the more compelling value choice. Analysts rate Lazard Ltd (LAZ) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — LAZ or SCHW?
On trailing P/E, Lazard Ltd (LAZ) is the cheapest at 18.9x versus The Charles Schwab Corporation at 31.8x. On forward P/E, Lazard Ltd is actually cheaper at 13.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: The Charles Schwab Corporation wins at 7.08x versus Lazard Ltd's 7.31x.
03Which is the better long-term investment — LAZ or SCHW?
Over the past 5 years, The Charles Schwab Corporation (SCHW) delivered a total return of +56.0%, compared to +49.2% for Lazard Ltd (LAZ). A $10,000 investment in SCHW five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SCHW returned +309.4% versus LAZ's +103.8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — LAZ or SCHW?
By beta (market sensitivity over 5 years), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.88β versus Lazard Ltd's 1.72β — meaning LAZ is approximately 96% more volatile than SCHW relative to the S&P 500. On balance sheet safety, The Charles Schwab Corporation (SCHW) carries a lower debt/equity ratio of 93% versus 3% for Lazard Ltd — giving it more financial flexibility in a downturn.
05Which has better profit margins — LAZ or SCHW?
The Charles Schwab Corporation (SCHW) is the more profitable company, earning 22.9% net margin versus 9.1% for Lazard Ltd — meaning it keeps 22.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SCHW leads at 29.6% versus 12.5% for LAZ. At the gross margin level — before operating expenses — SCHW leads at 75.4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is LAZ or SCHW more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, The Charles Schwab Corporation (SCHW) is the more undervalued stock at a PEG of 7.08x versus Lazard Ltd's 7.31x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Lazard Ltd (LAZ) trades at 13.9x forward P/E versus 16.2x for The Charles Schwab Corporation — 2.4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SCHW: 29.0% to $122.78.
07Which pays a better dividend — LAZ or SCHW?
All stocks in this comparison pay dividends. Lazard Ltd (LAZ) offers the highest yield at 3.5%, versus 1.3% for The Charles Schwab Corporation (SCHW).
08Is LAZ or SCHW better for a retirement portfolio?
For long-horizon retirement investors, The Charles Schwab Corporation (SCHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 1.3% yield, +309.4% 10Y return). Lazard Ltd (LAZ) carries a higher beta of 1.72 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SCHW: +309.4%, LAZ: +103.8%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between LAZ and SCHW?
Both stocks operate in the Financial Services sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: LAZ is a small-cap income-oriented stock; SCHW is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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