LPLA vs SF

For growth investors, LPL Financial Holdings Inc.

(LPLA) is the stronger pick with 37. 2% revenue growth year-over-year, versus 6. 9% for Stifel Financial Corp. (SF). Stifel Financial Corp. (SF) offers the better valuation at 13. 2x trailing P/E (12. 4x forward), making it the more compelling value choice. Analysts rate LPL Financial Holdings Inc. (LPLA) a "Buy" — based on 22 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.

On trailing P/E, Stifel Financial Corp.

(SF) is the cheapest at 13. 2x versus LPL Financial Holdings Inc. at 30. 0x. On forward P/E, Stifel Financial Corp. is actually cheaper at 12. 4x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: LPL Financial Holdings Inc. wins at 1. 10x versus Stifel Financial Corp. 's 1. 73x — a reasonable growth-adjusted valuation.

Over the past 5 years, LPL Financial Holdings Inc.

(LPLA) delivered a total return of +113. 1%, compared to +77. 2% for Stifel Financial Corp. (SF). Over 10 years, the gap is even starker: LPLA returned +1284% versus SF's +516. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), LPL Financial Holdings Inc.

(LPLA) is the lower-risk stock at 1. 10β versus Stifel Financial Corp. 's 1. 23β — meaning SF is approximately 12% more volatile than LPLA relative to the S&P 500. On balance sheet safety, Stifel Financial Corp. (SF) carries a lower debt/equity ratio of 36% versus 136% for LPL Financial Holdings Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), LPL Financial Holdings Inc.

(LPLA) is pulling ahead at 37. 2% versus 6. 9% for Stifel Financial Corp. (SF). On earnings-per-share growth, the picture is similar: Stifel Financial Corp. grew EPS -5. 9% year-over-year, compared to -22. 2% for LPL Financial Holdings Inc.. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Stifel Financial Corp.

(SF) is the more profitable company, earning 10. 9% net margin versus 5. 1% for LPL Financial Holdings Inc. — meaning it keeps 10. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SF leads at 13. 8% versus 13. 4% for LPLA. At the gross margin level — before operating expenses — SF leads at 86. 6%, 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.

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, LPL Financial Holdings Inc. (LPLA) is the more undervalued stock at a PEG of 1. 10x versus Stifel Financial Corp. 's 1. 73x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Stifel Financial Corp. (SF) trades at 12. 4x forward P/E versus 14. 6x for LPL Financial Holdings Inc. — 2. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LPLA: 34. 6% to $441. 00.

All stocks in this comparison pay dividends.

Stifel Financial Corp. (SF) offers the highest yield at 2. 4%, versus 0. 4% for LPL Financial Holdings Inc. (LPLA).

For long-horizon retirement investors, LPL Financial Holdings Inc.

(LPLA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 10), +1284% 10Y return). Both have compounded well over 10 years (LPLA: +1284%, SF: +516. 7%), 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.

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: LPLA is a mid-cap high-growth stock; SF is a mid-cap deep-value stock. SF pays a dividend while LPLA does not, making them suitable for different income and tax situations. 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.