Compare Futu Holdings Limited (FUTU) vs Raymond James Financial, Inc. (RJF) Stock

Raymond James Financial, Inc. (RJF) offers the better valuation at 14.9x trailing P/E (12.6x 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.

On trailing P/E, Raymond James Financial, Inc. (RJF) is the cheapest at 14.9x 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 Raymond James Financial, Inc.'s 0.59x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Raymond James Financial, Inc. (RJF) delivered a total return of +99.8%, compared to -9.0% for Futu Holdings Limited (FUTU). A $10,000 investment in RJF five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: FUTU returned +884.3% versus RJF's +464.9%. 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), Raymond James Financial, Inc. (RJF) is the lower-risk stock at 1.03β versus Futu Holdings Limited's 1.57β — meaning FUTU is approximately 53% more volatile than RJF relative to the S&P 500. On balance sheet safety, Futu Holdings Limited (FUTU) carries a lower debt/equity ratio of 31% versus 36% for Raymond James Financial, Inc. — giving it more financial flexibility in a downturn.

Futu Holdings Limited (FUTU) is the more profitable company, earning 40.1% net margin versus 13.4% for Raymond James Financial, 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 28.7% for RJF. At the gross margin level — before operating expenses — RJF leads at 88.2%, 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, Futu Holdings Limited (FUTU) is the more undervalued stock at a PEG of 0.02x versus Raymond James Financial, Inc.'s 0.59x. 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 12.6x for Raymond James Financial, Inc. — 10.8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for FUTU: 51.0% to $224.70.

In this comparison, RJF (1.3% yield) pays a dividend. FUTU does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Raymond James Financial, Inc. (RJF) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.03), 1.3% yield, +464.9% 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 (RJF: +464.9%, 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.

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: FUTU is a mid-cap quality compounder stock; RJF is a mid-cap deep-value stock. RJF pays a dividend while FUTU 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.