IBKR vs LPLA

For growth investors, LPL Financial Holdings Inc.

(LPLA) is the stronger pick with 37. 2% revenue growth year-over-year, versus 9. 8% for Interactive Brokers Group, Inc. (IBKR). LPL Financial Holdings Inc. (LPLA) offers the better valuation at 30. 0x trailing P/E (14. 6x forward), making it the more compelling value choice. Analysts rate Interactive Brokers Group, Inc. (IBKR) a "Buy" — based on 19 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, LPL Financial Holdings Inc.

(LPLA) is the cheapest at 30. 0x versus Interactive Brokers Group, Inc. at 37. 8x. On forward P/E, LPL Financial Holdings Inc. is actually cheaper at 14. 6x. 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 Interactive Brokers Group, Inc. 's 1. 13x — a reasonable growth-adjusted valuation.

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

(IBKR) delivered a total return of +384. 2%, compared to +113. 1% for LPL Financial Holdings Inc. (LPLA). Over 10 years, the gap is even starker: LPLA returned +1284% versus IBKR's +828. 0%. 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 Interactive Brokers Group, Inc. 's 1. 93β — meaning IBKR is approximately 76% more volatile than LPLA relative to the S&P 500. On balance sheet safety, Interactive Brokers Group, Inc. (IBKR) carries a lower debt/equity ratio of 0% 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 9. 8% for Interactive Brokers Group, Inc. (IBKR). On earnings-per-share growth, the picture is similar: Interactive Brokers Group, Inc. grew EPS 28. 3% 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.

Interactive Brokers Group, Inc.

(IBKR) is the more profitable company, earning 9. 6% net margin versus 5. 1% for LPL Financial Holdings Inc. — meaning it keeps 9. 6% 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, LPL Financial Holdings Inc. (LPLA) is the more undervalued stock at a PEG of 1. 10x versus Interactive Brokers Group, Inc. 's 1. 13x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, LPL Financial Holdings Inc. (LPLA) trades at 14. 6x forward P/E versus 33. 7x for Interactive Brokers Group, Inc. — 19. 1x 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.

LPL Financial Holdings Inc. (LPLA) offers the highest yield at 0. 4%, versus 0. 4% for Interactive Brokers Group, Inc. (IBKR).

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). 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 (LPLA: +1284%, IBKR: +828. 0%), 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: IBKR is a mid-cap quality compounder stock; LPLA is a mid-cap high-growth 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.