Comprehensive Stock Comparison
Compare XP Inc. (XP) 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 | XP | 34.1% revenue growth vs SCHW's 1.9% |
| Value | XP | Lower P/E (1.9x vs 16.2x), PEG 0.06 vs 7.08 |
| Quality / Margins | SCHW | 22.9% net margin vs XP's 22.7% |
| Stability / Safety | XP | Beta 0.83 vs SCHW's 0.88 |
| Dividends | XP | 3.3% yield, vs SCHW's 1.3% |
| Momentum (1Y) | XP | +53.4% vs SCHW's +21.1% |
| Efficiency (ROA) | SCHW | 232.8% ROA vs XP's 1.3%, ROIC 6.0% vs -2.6% |
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
XP Inc. is a Brazilian financial services platform that provides investment products, brokerage services, and financial education to retail and institutional clients. It generates revenue primarily through securities brokerage commissions, asset management fees from its investment products, and advisory services for corporate and high-net-worth clients. The company's key advantage is its integrated open platform ecosystem—combining education, advisory, and execution—which creates strong client retention in Brazil's growing financial market.
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
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
XP leads in 4 of 6 categories (Valuation Metrics, Total Returns). SCHW leads in 2 (Financial Metrics, Profitability & Efficiency).
Financial Metrics (TTM)
SCHW and XP operate at a comparable scale, with $26.0B and $19.9B in trailing revenue. Profitability is closely matched — net margins range from 22.9% (SCHW) to 22.7% (XP).
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| RevenueTrailing 12 months | $19.9B | $26.0B |
| EBITDAEarnings before interest/tax | -$1.7B | $12.8B |
| Net IncomeAfter-tax profit | $5.1B | $8.9B |
| Free Cash FlowCash after capex | $17.9B | $9.7B |
| Gross MarginGross profit ÷ Revenue | +9.5% | +75.4% |
| Operating MarginEBIT ÷ Revenue | -19.7% | +29.6% |
| Net MarginNet income ÷ Revenue | +22.7% | +22.9% |
| FCF MarginFCF ÷ Revenue | +54.6% | +7.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +13.8% | +41.5% |
Valuation Metrics
At 13.5x trailing earnings, XP trades at a 58% valuation discount to SCHW's 31.8x P/E. Adjusting for growth (PEG ratio), XP offers better value at 0.43x vs SCHW's 13.91x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| Market CapShares × price | $8.9B | $169.2B |
| Enterprise ValueMkt cap + debt − cash | $30.2B | $172.2B |
| Trailing P/EPrice ÷ TTM EPS | 13.51x | 31.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.89x | 16.22x |
| PEG RatioP/E ÷ EPS growth rate | 0.43x | 13.91x |
| EV / EBITDAEnterprise value multiple | — | 18.87x |
| Price / SalesMarket cap ÷ Revenue | 2.32x | 6.51x |
| Price / BookPrice ÷ Book value/share | 3.04x | 3.61x |
| Price / FCFMarket cap ÷ FCF | 4.26x | 82.52x |
Profitability & Efficiency
SCHW delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $21 for XP. SCHW carries lower financial leverage with a 0.93x debt-to-equity ratio, signaling a more conservative balance sheet compared to XP's 5.74x. On the Piotroski fundamental quality scale (0–9), SCHW scores 7/9 vs XP's 3/9, reflecting strong financial health.
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| ROE (TTM)Return on equity | +21.4% | +2.9% |
| ROA (TTM)Return on assets | +1.3% | +2.3% |
| ROICReturn on invested capital | -2.6% | +6.0% |
| ROCEReturn on capital employed | -2.8% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 7 |
| Debt / EquityFinancial leverage | 5.74x | 0.93x |
| Net DebtTotal debt minus cash | $109.5B | $3.1B |
| Cash & Equiv.Liquid assets | $5.6B | $42.1B |
| Total DebtShort + long-term debt | $115.1B | $45.1B |
| Interest CoverageEBIT ÷ Interest expense | 8.55x | 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 $5,366 for XP. Over the past 12 months, XP leads with a +53.4% total return vs SCHW's +21.1%. The 3-year compound annual growth rate (CAGR) favors XP at 24.0% vs SCHW's 8.1% — a key indicator of consistent wealth creation.
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| YTD ReturnYear-to-date | +33.1% | -6.0% |
| 1-Year ReturnPast 12 months | +53.4% | +21.1% |
| 3-Year ReturnCumulative with dividends | +90.6% | +26.2% |
| 5-Year ReturnCumulative with dividends | -46.3% | +56.0% |
| 10-Year ReturnCumulative with dividends | -31.3% | +309.4% |
| CAGR (3Y)Annualised 3-year return | +24.0% | +8.1% |
Risk & Volatility
XP is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than SCHW's 0.88 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. XP currently trades 93.2% from its 52-week high vs SCHW's 88.6% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 0.88x |
| 52-Week HighHighest price in past year | $23.11 | $107.50 |
| 52-Week LowLowest price in past year | $12.20 | $65.88 |
| % of 52W HighCurrent price vs 52-week peak | +93.2% | +88.6% |
| RSI (14)Momentum oscillator 0–100 | 60.4 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 5.6M | 9.0M |
Analyst Outlook
Wall Street rates XP as "Buy" and SCHW as "Buy". Consensus price targets imply 29.0% upside for SCHW (target: $123) vs 9.2% for XP (target: $24). For income investors, XP offers the higher dividend yield at 3.34% vs SCHW's 1.30%.
| Metric | XPXP Inc. | SCHWThe Charles Schwa… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $23.50 | $122.78 |
| # AnalystsCovering analysts | 9 | 50 |
| Dividend YieldAnnual dividend ÷ price | +3.3% | +1.3% |
| Dividend StreakConsecutive years of raises | 0 | 0 |
| Dividend / ShareAnnual DPS | $3.72 | $1.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.9% | 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 |
|---|---|---|---|
| XP Inc. (XP) | 100 | 53.32 | -46.7% |
| The Charles Schwab … (SCHW) | 100 | 250.52 | +150.5% |
The Charles Schwab … (SCHW) returned +56% over 5 years vs XP Inc. (XP)'s -46%. 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 |
|---|---|---|---|
| XP Inc. (XP) | $661M | $19.9B | +2905.4% |
| The Charles Schwab … (SCHW) | $6.5B | $26.0B | +299.9% |
XP Inc.'s revenue grew from $661M (2015) to $19.9B (2024) — a 46.0% 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 |
|---|---|---|---|
| XP Inc. (XP) | 11.5% | 22.7% | +98.1% |
| The Charles Schwab … (SCHW) | 22.3% | 22.9% | +2.7% |
XP Inc.'s net margin went from 11% (2015) to 23% (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 |
|---|---|---|---|
| XP Inc. (XP) | 18.3 | 1.4 | -92.3% |
| The Charles Schwab … (SCHW) | 31.9 | 24.8 | -22.3% |
XP Inc. has traded in a 1x–18x P/E range over 6 years; current trailing P/E is ~14x. 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 |
|---|---|---|---|
| XP Inc. (XP) | 0.31 | 8.23 | +2554.8% |
| The Charles Schwab … (SCHW) | 1.03 | 2.99 | +190.3% |
XP Inc.'s EPS grew from $0.31 (2015) to $8.23 (2024) — a 44% 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
XP Inc. generated $11B FCF in 2024 (+348% vs 2021). The Charles Schwab Corporation generated $2B FCF in 2024 (+71% vs 2021).
XP vs SCHW: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is XP or SCHW a better buy right now?
XP Inc. (XP) offers the better valuation at 13.5x trailing P/E (1.9x forward), making it the more compelling value choice. Analysts rate XP Inc. (XP) a "Buy" — based on 9 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 — XP or SCHW?
On trailing P/E, XP Inc. (XP) is the cheapest at 13.5x versus The Charles Schwab Corporation at 31.8x. On forward P/E, XP Inc. is actually cheaper at 1.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: XP Inc. wins at 0.06x versus The Charles Schwab Corporation's 7.08x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — XP or SCHW?
Over the past 5 years, The Charles Schwab Corporation (SCHW) delivered a total return of +56.0%, compared to -46.3% for XP Inc. (XP). 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 XP's -31.3%. 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 — XP or SCHW?
By beta (market sensitivity over 5 years), XP Inc. (XP) is the lower-risk stock at 0.83β versus The Charles Schwab Corporation's 0.88β — meaning SCHW is approximately 5% more volatile than XP relative to the S&P 500. On balance sheet safety, The Charles Schwab Corporation (SCHW) carries a lower debt/equity ratio of 93% versus 6% for XP Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — XP or SCHW?
The Charles Schwab Corporation (SCHW) is the more profitable company, earning 22.9% net margin versus 22.7% for XP Inc. — 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 -19.7% for XP. 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 XP 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, XP Inc. (XP) is the more undervalued stock at a PEG of 0.06x versus The Charles Schwab Corporation's 7.08x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, XP Inc. (XP) trades at 1.9x forward P/E versus 16.2x for The Charles Schwab Corporation — 14.3x 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 — XP or SCHW?
All stocks in this comparison pay dividends. XP Inc. (XP) offers the highest yield at 3.3%, versus 1.3% for The Charles Schwab Corporation (SCHW).
08Is XP 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). Both have compounded well over 10 years (SCHW: +309.4%, XP: -31.3%), 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 XP 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: XP is a small-cap deep-value 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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