FRHC vs SCHW vs IBKR vs RJF vs LPLA

For growth investors, LPL Financial Holdings Inc.

(LPLA) is the stronger pick with 37. 2% revenue growth year-over-year, versus 1. 9% for The Charles Schwab Corporation (SCHW). Raymond James Financial, Inc. (RJF) offers the better valuation at 15. 0x trailing P/E (13. 0x forward), making it the more compelling value choice. Analysts rate The Charles Schwab Corporation (SCHW) a "Buy" — based on 50 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, Raymond James Financial, Inc.

(RJF) is the cheapest at 15. 0x versus Freedom Holding Corp. at 99. 9x. On forward P/E, Raymond James Financial, Inc. is actually cheaper at 13. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Raymond James Financial, Inc. wins at 0. 60x versus The Charles Schwab Corporation's 6. 42x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Interactive Brokers Group, Inc.

(IBKR) delivered a total return of +402. 3%, compared to +31. 8% for The Charles Schwab Corporation (SCHW). Over 10 years, the gap is even starker: FRHC returned +71. 1% versus SCHW's +253. 1%. 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), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.

71β versus Interactive Brokers Group, Inc. 's 1. 93β — meaning IBKR is approximately 173% more volatile than SCHW relative to the S&P 500. On balance sheet safety, Interactive Brokers Group, Inc. (IBKR) carries a lower debt/equity ratio of 0% versus 161% for Freedom Holding Corp. — 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 1. 9% for The Charles Schwab Corporation (SCHW). On earnings-per-share growth, the picture is similar: Interactive Brokers Group, Inc. grew EPS 28. 3% year-over-year, compared to -77. 9% for Freedom Holding Corp.. 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.

The Charles Schwab Corporation (SCHW) is the more profitable company, earning 22.

9% net margin versus 4. 2% for Freedom Holding Corp. — meaning it keeps 22. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: IBKR leads at 86. 0% versus 13. 4% for LPLA. At the gross margin level — before operating expenses — IBKR leads at 89. 8%, 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, Raymond James Financial, Inc. (RJF) is the more undervalued stock at a PEG of 0. 60x versus The Charles Schwab Corporation's 6. 42x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Raymond James Financial, Inc. (RJF) trades at 13. 0x forward P/E versus 33. 8x for Interactive Brokers Group, Inc. — 20. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LPLA: 45. 3% to $441. 00.

In this comparison, SCHW (1.

4% yield), RJF (1. 3% yield), LPLA (0. 4% yield), IBKR (0. 4% yield) pay a dividend. FRHC does not pay a meaningful dividend and should not be held primarily for income.

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.

71), 1. 4% yield, +253. 1% 10Y return). Interactive Brokers Group, Inc. (IBKR) carries a higher beta of 1. 93 — 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: +253. 1%, IBKR: +831. 5%), 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: FRHC is a small-cap high-growth stock; SCHW is a mid-cap quality compounder stock; IBKR is a mid-cap quality compounder stock; RJF is a mid-cap deep-value stock; LPLA is a mid-cap high-growth stock. SCHW, RJF pay a dividend while FRHC, IBKR, LPLA do 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.