Comprehensive Stock Comparison
Compare LPL Financial Holdings Inc. (LPLA) vs The Goldman Sachs Group, Inc. (GS) vs Morgan Stanley (MS) 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 MS's 16.8% |
| Value | LPLA | Lower P/E (12.7x vs 14.8x), PEG 0.95 vs 1.66 |
| Quality / Margins | MS | 13.0% net margin vs LPLA's 5.1% |
| Stability / Safety | LPLA | Beta 1.30 vs GS's 1.36, lower leverage |
| Dividends | GS | 1.6% yield, 12-year raise streak, vs MS's 2.3% |
| Momentum (1Y) | GS | +40.4% vs LPLA's -18.9% |
| Efficiency (ROA) | LPLA | 4.7% ROA vs GS's 0.9%, ROIC 16.1% vs 1.9% |
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
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.
Goldman Sachs is a global investment bank and financial services firm that provides investment banking, securities, and investment management services to corporations, governments, and high-net-worth individuals. It generates revenue primarily through investment banking fees (20-25%), trading and market-making in its Global Markets segment (40-45%), and asset management fees from its wealth and investment management divisions (30-35%). The firm's key competitive advantage lies in its elite brand reputation, deep client relationships with the world's largest corporations and governments, and its sophisticated risk management capabilities honed over decades.
Morgan Stanley is a global investment bank and wealth management firm that provides financial services to institutions, corporations, and individuals. It generates revenue primarily through investment banking fees (~30%), wealth management fees (~40%), and trading & sales activities (~25%), with the remainder from investment management. The company's competitive advantage lies in its elite brand reputation, global institutional relationships, and integrated platform that connects investment banking with wealth management.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
LPLA leads in 2 of 6 categories (Valuation Metrics, Profitability & Efficiency). MS leads in 1 (Financial Metrics). 2 tied.
Financial Metrics (TTM)
GS is the larger business by revenue, generating $126.9B annually — 7.5x LPLA's $17.0B. MS is the more profitable business, keeping 13.0% of every revenue dollar as net income compared to LPLA's 5.1%.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| RevenueTrailing 12 months | $17.0B | $126.9B | $103.1B |
| EBITDAEarnings before interest/tax | $2.3B | $23.4B | $26.3B |
| Net IncomeAfter-tax profit | $863M | $16.7B | $16.2B |
| Free Cash FlowCash after capex | -$1.6B | $15.8B | -$6.7B |
| Gross MarginGross profit ÷ Revenue | +25.6% | +41.1% | +55.6% |
| Operating MarginEBIT ÷ Revenue | +13.4% | +14.5% | +17.1% |
| Net MarginNet income ÷ Revenue | +5.1% | +11.3% | +13.0% |
| FCF MarginFCF ÷ Revenue | — | -12.1% | -2.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +4.2% | +45.8% | +48.9% |
Valuation Metrics
At 20.9x trailing earnings, MS trades at a 24% valuation discount to LPLA's 27.5x P/E. Adjusting for growth (PEG ratio), GS offers better value at 1.51x vs MS's 2.35x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Market CapShares × price | $24.0B | $267.0B | $264.9B |
| Enterprise ValueMkt cap + debt − cash | $30.3B | $701.9B | $549.6B |
| Trailing P/EPrice ÷ TTM EPS | 27.51x | 21.20x | 20.94x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.65x | 14.73x | 14.79x |
| PEG RatioP/E ÷ EPS growth rate | 2.07x | 1.51x | 2.35x |
| EV / EBITDAEnterprise value multiple | 10.38x | 33.76x | 24.15x |
| Price / SalesMarket cap ÷ Revenue | 1.42x | 2.10x | 2.57x |
| Price / BookPrice ÷ Book value/share | 4.44x | 2.35x | 2.54x |
| Price / FCFMarket cap ÷ FCF | — | — | — |
Profitability & Efficiency
LPLA delivers a 16.1% return on equity — every $100 of shareholder capital generates $16 in annual profit, vs $13 for GS. LPLA carries lower financial leverage with a 1.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to GS's 5.06x. On the Piotroski fundamental quality scale (0–9), MS scores 5/9 vs LPLA's 2/9, reflecting solid financial health.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| ROE (TTM)Return on equity | +16.1% | +12.6% | +14.6% |
| ROA (TTM)Return on assets | +4.7% | +0.9% | +1.2% |
| ROICReturn on invested capital | +16.1% | +1.9% | +2.9% |
| ROCEReturn on capital employed | +19.1% | +3.6% | +3.8% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 4 | 5 |
| Debt / EquityFinancial leverage | 1.36x | 5.06x | 3.42x |
| Net DebtTotal debt minus cash | $4.2B | $434.8B | $284.7B |
| Cash & Equiv.Liquid assets | $1.0B | $182.1B | $75.7B |
| Total DebtShort + long-term debt | $7.3B | $616.9B | $360.5B |
| Interest CoverageEBIT ÷ Interest expense | 3.85x | 0.31x | 0.44x |
Total Returns (with DRIP)
A $10,000 investment in GS five years ago would be worth $27,615 today (with dividends reinvested), compared to $22,612 for LPLA. Over the past 12 months, GS leads with a +40.4% total return vs LPLA's -18.9%. The 3-year compound annual growth rate (CAGR) favors GS at 36.6% vs LPLA's 6.8% — a key indicator of consistent wealth creation.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| YTD ReturnYear-to-date | -16.9% | -6.0% | -7.9% |
| 1-Year ReturnPast 12 months | -18.9% | +40.4% | +28.0% |
| 3-Year ReturnCumulative with dividends | +21.8% | +154.7% | +83.8% |
| 5-Year ReturnCumulative with dividends | +126.1% | +176.1% | +131.0% |
| 10-Year ReturnCumulative with dividends | +1437.2% | +521.2% | +662.8% |
| CAGR (3Y)Annualised 3-year return | +6.8% | +36.6% | +22.5% |
Risk & Volatility
LPLA is the less volatile stock with a 1.30 beta — it tends to amplify market swings less than GS's 1.36 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GS currently trades 87.3% from its 52-week high vs LPLA's 74.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 1.36x | 1.35x |
| 52-Week HighHighest price in past year | $403.58 | $984.70 | $192.68 |
| 52-Week LowLowest price in past year | $262.83 | $439.38 | $94.33 |
| % of 52W HighCurrent price vs 52-week peak | +74.4% | +87.3% | +86.4% |
| RSI (14)Momentum oscillator 0–100 | 38.5 | 52.2 | 51.2 |
| Avg Volume (50D)Average daily shares traded | 712K | 2.0M | 5.8M |
Analyst Outlook
Analyst consensus: LPLA as "Buy", GS as "Hold", MS as "Buy". Consensus price targets imply 52.9% upside for LPLA (target: $459) vs 8.6% for GS (target: $934). For income investors, MS offers the higher dividend yield at 2.29% vs GS's 1.57%.
| Metric | LPLALPL Financial Hol… | GSThe Goldman Sachs… | MSMorgan Stanley |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold | Buy |
| Price TargetConsensus 12-month target | $459.17 | $933.67 | $196.00 |
| # AnalystsCovering analysts | 22 | 54 | 50 |
| Dividend YieldAnnual dividend ÷ price | — | +1.6% | +2.3% |
| Dividend StreakConsecutive years of raises | 3 | 12 | 11 |
| Dividend / ShareAnnual DPS | — | $13.48 | $3.81 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.8% | +1.6% |
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 |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 100 | 499.05 | +399.0% |
| The Goldman Sachs G… (GS) | 100 | 465.19 | +365.2% |
| Morgan Stanley (MS) | 100 | 416.89 | +316.9% |
The Goldman Sachs G… (GS) returned +176% over 5 years vs LPL Financial Holdi… (LPLA)'s +126%. A $10,000 investment in GS 5 years ago would be worth $27,615 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | $4.0B | $17.0B | +319.6% |
| The Goldman Sachs G… (GS) | $37.9B | $126.9B | +234.8% |
| Morgan Stanley (MS) | $36.0B | $103.1B | +186.3% |
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 |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 4.7% | 5.1% | +7.2% |
| The Goldman Sachs G… (GS) | 19.5% | 11.3% | -42.4% |
| Morgan Stanley (MS) | 16.6% | 13.0% | -21.8% |
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 |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 22.1 | 32.7 | +48.0% |
| The Goldman Sachs G… (GS) | 28.3 | 14.1 | -50.2% |
| Morgan Stanley (MS) | 17 | 15.8 | -7.1% |
LPL Financial Holdings Inc. has traded in a 13x–33x P/E range over 9 years; current trailing P/E is ~28x. The Goldman Sachs Group, Inc. has traded in a 6x–28x P/E range over 8 years; current trailing P/E is ~21x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 2.13 | 10.92 | +412.7% |
| The Goldman Sachs G… (GS) | 17 | 40.54 | +138.5% |
| Morgan Stanley (MS) | 2.92 | 7.95 | +172.3% |
LPL Financial Holdings Inc.'s EPS grew from $2.13 (2016) to $10.92 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
LPL Financial Holdings Inc. generated $0M FCF in 2025 (-100% vs 2021). The Goldman Sachs Group, Inc. generated $-15B FCF in 2024 (-1038% vs 2021).
LPLA vs GS vs MS: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is LPLA or GS or MS a better buy right now?
Morgan Stanley (MS) offers the better valuation at 20.9x trailing P/E (14.8x forward), making it the more compelling value choice. Analysts rate LPL Financial Holdings Inc. (LPLA) a "Buy" — based on 22 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 — LPLA or GS or MS?
On trailing P/E, Morgan Stanley (MS) is the cheapest at 20.9x versus LPL Financial Holdings Inc. at 27.5x. On forward P/E, LPL Financial Holdings Inc. is actually cheaper at 12.7x — 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: LPL Financial Holdings Inc. wins at 0.95x versus Morgan Stanley's 1.66x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — LPLA or GS or MS?
Over the past 5 years, The Goldman Sachs Group, Inc. (GS) delivered a total return of +176.1%, compared to +126.1% for LPL Financial Holdings Inc. (LPLA). A $10,000 investment in GS five years ago would be worth approximately $28K today (assuming dividends reinvested). Over 10 years, the gap is even starker: LPLA returned +1437% versus GS's +521.2%. 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 — LPLA or GS or MS?
By beta (market sensitivity over 5 years), LPL Financial Holdings Inc. (LPLA) is the lower-risk stock at 1.30β versus The Goldman Sachs Group, Inc.'s 1.36β — meaning GS is approximately 5% more volatile than LPLA relative to the S&P 500. On balance sheet safety, LPL Financial Holdings Inc. (LPLA) carries a lower debt/equity ratio of 136% versus 5% for The Goldman Sachs Group, Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — LPLA or GS or MS?
Morgan Stanley (MS) is the more profitable company, earning 13.0% net margin versus 5.1% for LPL Financial Holdings Inc. — meaning it keeps 13.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MS leads at 17.1% versus 13.4% for LPLA. At the gross margin level — before operating expenses — MS leads at 55.6%, 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 LPLA or GS or MS 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, LPL Financial Holdings Inc. (LPLA) is the more undervalued stock at a PEG of 0.95x versus Morgan Stanley's 1.66x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, LPL Financial Holdings Inc. (LPLA) trades at 12.7x forward P/E versus 14.8x for Morgan Stanley — 2.1x 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 — LPLA or GS or MS?
In this comparison, MS (2.3% yield), GS (1.6% yield) pay a dividend. LPLA does not pay a meaningful dividend and should not be held primarily for income.
08Is LPLA or GS or MS 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). Both have compounded well over 10 years (LPLA: +1437%, GS: +521.2%), 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 LPLA and GS and MS?
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. GS, MS pay a dividend while LPLA 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.
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