Comprehensive Stock Comparison
Compare Futu Holdings Limited (FUTU) vs LPL Financial Holdings Inc. (LPLA) 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 | LPLA | 37.2% revenue growth vs FUTU's 35.8% |
| Value | FUTU | Lower P/E (1.8x vs 12.7x), PEG 0.02 vs 0.95 |
| Quality / Margins | FUTU | 40.1% net margin vs LPLA's 5.1% |
| Stability / Safety | LPLA | Beta 1.30 vs FUTU's 1.57 |
| Dividends | Tie | Neither pays a meaningful dividend |
| Momentum (1Y) | FUTU | +36.3% vs LPLA's -18.9% |
| Efficiency (ROA) | LPLA | 4.7% ROA vs FUTU's 4.0%, ROIC 16.1% vs 14.8% |
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
Futu Holdings is a digital brokerage and wealth management platform serving investors primarily in Hong Kong and internationally. It makes money through securities trading commissions, margin financing interest, and fund distribution fees — with its core Futubull and Moomoo platforms generating revenue from both retail and institutional clients. The company's key advantage is its integrated digital ecosystem combining trading, market data, and community features that create strong user engagement and switching costs.
LPL Financial operates a comprehensive brokerage and investment advisory platform for independent financial advisors and advisors at financial institutions across the United States. It generates revenue primarily through asset-based fees (roughly 60% of revenue), transaction commissions (about 25%), and cash sweep programs (approximately 15%). The company's key advantage is its massive scale and integrated technology platform that serves over 22,000 advisors—creating significant switching costs and network effects in the independent advisor channel.
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
FUTU leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). LPLA leads in 2 (Valuation Metrics, Risk & Volatility).
Financial Metrics (TTM)
LPLA and FUTU operate at a comparable scale, with $17.0B and $13.6B in trailing revenue. FUTU is the more profitable business, keeping 40.1% of every revenue dollar as net income compared to LPLA's 5.1%.
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| RevenueTrailing 12 months | $13.6B | $17.0B |
| EBITDAEarnings before interest/tax | $10.0B | $2.3B |
| Net IncomeAfter-tax profit | $7.9B | $863M |
| Free Cash FlowCash after capex | $0 | -$1.6B |
| Gross MarginGross profit ÷ Revenue | +82.0% | +25.6% |
| Operating MarginEBIT ÷ Revenue | +48.7% | +13.4% |
| Net MarginNet income ÷ Revenue | +40.1% | +5.1% |
| FCF MarginFCF ÷ Revenue | +2.3% | — |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +111.5% | +4.2% |
Valuation Metrics
At 27.5x trailing earnings, LPLA trades at a 8% valuation discount to FUTU's 30.0x P/E. Adjusting for growth (PEG ratio), FUTU offers better value at 0.32x vs LPLA's 2.07x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| Market CapShares × price | $52.9B | $24.0B |
| Enterprise ValueMkt cap + debt − cash | $52.5B | $30.3B |
| Trailing P/EPrice ÷ TTM EPS | 29.96x | 27.51x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.79x | 12.65x |
| PEG RatioP/E ÷ EPS growth rate | 0.32x | 2.07x |
| EV / EBITDAEnterprise value multiple | 60.44x | 10.38x |
| Price / SalesMarket cap ÷ Revenue | 30.46x | 1.42x |
| Price / BookPrice ÷ Book value/share | 5.82x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 13.43x | — |
Profitability & Efficiency
FUTU delivers a 23.8% return on equity — every $100 of shareholder capital generates $24 in annual profit, vs $16 for LPLA. FUTU carries lower financial leverage with a 0.31x debt-to-equity ratio, signaling a more conservative balance sheet compared to LPLA's 1.36x. On the Piotroski fundamental quality scale (0–9), FUTU scores 4/9 vs LPLA's 2/9, reflecting mixed financial health.
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +23.8% | +16.1% |
| ROA (TTM)Return on assets | +4.0% | +4.7% |
| ROICReturn on invested capital | +14.8% | +16.1% |
| ROCEReturn on capital employed | +25.1% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 4 | 2 |
| Debt / EquityFinancial leverage | 0.31x | 1.36x |
| Net DebtTotal debt minus cash | -$3.1B | $4.2B |
| Cash & Equiv.Liquid assets | $11.7B | $1.0B |
| Total DebtShort + long-term debt | $8.6B | $7.3B |
| Interest CoverageEBIT ÷ Interest expense | — | 3.85x |
Total Returns (with DRIP)
A $10,000 investment in LPLA five years ago would be worth $22,612 today (with dividends reinvested), compared to $9,101 for FUTU. Over the past 12 months, FUTU leads with a +36.3% total return vs LPLA's -18.9%. The 3-year compound annual growth rate (CAGR) favors FUTU at 45.2% vs LPLA's 6.8% — a key indicator of consistent wealth creation.
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| YTD ReturnYear-to-date | -16.6% | -16.9% |
| 1-Year ReturnPast 12 months | +36.3% | -18.9% |
| 3-Year ReturnCumulative with dividends | +206.4% | +21.8% |
| 5-Year ReturnCumulative with dividends | -9.0% | +126.1% |
| 10-Year ReturnCumulative with dividends | +884.3% | +1437.2% |
| CAGR (3Y)Annualised 3-year return | +45.2% | +6.8% |
Risk & Volatility
LPLA is the less volatile stock with a 1.30 beta — it tends to amplify market swings less than FUTU's 1.57 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.57x | 1.30x |
| 52-Week HighHighest price in past year | $202.53 | $403.58 |
| 52-Week LowLowest price in past year | $70.60 | $262.83 |
| % of 52W HighCurrent price vs 52-week peak | +73.5% | +74.4% |
| RSI (14)Momentum oscillator 0–100 | 46.9 | 38.5 |
| Avg Volume (50D)Average daily shares traded | 1.2M | 712K |
Analyst Outlook
Wall Street rates FUTU as "Buy" and LPLA as "Buy". Consensus price targets imply 52.9% upside for LPLA (target: $459) vs 51.0% for FUTU (target: $225).
| Metric | FUTUFutu Holdings Lim… | LPLALPL Financial Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $224.70 | $459.17 |
| # AnalystsCovering analysts | 12 | 22 |
| Dividend YieldAnnual dividend ÷ price | — | — |
| Dividend StreakConsecutive years of raises | — | 3 |
| Dividend / ShareAnnual DPS | — | — |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | 100 | 1,397.75 | +1297.8% |
| LPL Financial Holdi… (LPLA) | 100 | 473.49 | +373.5% |
LPL Financial Holdi… (LPLA) returned +126% over 5 years vs Futu Holdings Limit… (FUTU)'s -9%. A $10,000 investment in LPLA 5 years ago would be worth $22,612 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | $87M | $13.6B | +15518.1% |
| LPL Financial Holdi… (LPLA) | $4.0B | $17.0B | +319.6% |
LPL Financial Holdings Inc.'s revenue grew from $4.0B (2016) to $17.0B (2025) — a 17.3% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | -113.2% | 40.1% | +135.4% |
| LPL Financial Holdi… (LPLA) | 4.7% | 5.1% | +7.2% |
LPL Financial Holdings Inc.'s net margin went from 5% (2016) to 5% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | 7.2 | 2.1 | -70.8% |
| LPL Financial Holdi… (LPLA) | 22.1 | 32.7 | +48.0% |
Futu Holdings Limited has traded in a 2x–7x P/E range over 6 years; current trailing P/E is ~30x. LPL Financial Holdings Inc. has traded in a 13x–33x P/E range over 9 years; current trailing P/E is ~28x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Futu Holdings Limit… (FUTU) | -0.89 | 38.86 | +4466.3% |
| LPL Financial Holdi… (LPLA) | 2.13 | 10.92 | +412.7% |
LPL Financial Holdings Inc.'s EPS grew from $2.13 (2016) to $10.92 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
Futu Holdings Limited generated $31B FCF in 2024 (+419% vs 2021). LPL Financial Holdings Inc. generated $0M FCF in 2025 (-100% vs 2021).
FUTU vs LPLA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is FUTU or LPLA a better buy right now?
LPL Financial Holdings Inc. (LPLA) offers the better valuation at 27.5x trailing P/E (12.7x forward), making it the more compelling value choice. Analysts rate Futu Holdings Limited (FUTU) a "Buy" — based on 12 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 — FUTU or LPLA?
On trailing P/E, LPL Financial Holdings Inc. (LPLA) is the cheapest at 27.5x versus Futu Holdings Limited at 30.0x. On forward P/E, Futu Holdings Limited is actually cheaper at 1.8x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Futu Holdings Limited wins at 0.02x versus LPL Financial Holdings Inc.'s 0.95x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — FUTU or LPLA?
Over the past 5 years, LPL Financial Holdings Inc. (LPLA) delivered a total return of +126.1%, compared to -9.0% for Futu Holdings Limited (FUTU). A $10,000 investment in LPLA five years ago would be worth approximately $23K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LPLA returned +1437% versus FUTU's +884.3%. 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 — FUTU or LPLA?
By beta (market sensitivity over 5 years), LPL Financial Holdings Inc. (LPLA) is the lower-risk stock at 1.30β versus Futu Holdings Limited's 1.57β — meaning FUTU is approximately 21% more volatile than LPLA relative to the S&P 500. On balance sheet safety, Futu Holdings Limited (FUTU) carries a lower debt/equity ratio of 31% versus 136% for LPL Financial Holdings Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — FUTU or LPLA?
Futu Holdings Limited (FUTU) is the more profitable company, earning 40.1% net margin versus 5.1% for LPL Financial Holdings Inc. — meaning it keeps 40.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FUTU leads at 48.7% versus 13.4% for LPLA. At the gross margin level — before operating expenses — FUTU leads at 82.0%, 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 FUTU or LPLA 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, Futu Holdings Limited (FUTU) is the more undervalued stock at a PEG of 0.02x versus LPL Financial Holdings Inc.'s 0.95x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Futu Holdings Limited (FUTU) trades at 1.8x forward P/E versus 12.7x for LPL Financial Holdings Inc. — 10.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for LPLA: 52.9% to $459.17.
07Which pays a better dividend — FUTU or LPLA?
None of the stocks in this comparison currently pay a material dividend. All are effectively zero-yield and should be held for capital appreciation rather than income.
08Is FUTU or LPLA better for a retirement portfolio?
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 1.30), +1437% 10Y return). Futu Holdings Limited (FUTU) carries a higher beta of 1.57 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (LPLA: +1437%, FUTU: +884.3%), 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 FUTU and LPLA?
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. 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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