Comprehensive Stock Comparison
Compare LPL Financial Holdings Inc. (LPLA) vs Raymond James Financial, Inc. (RJF) 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 RJF's 7.9% |
| Value | RJF | Lower P/E (12.6x vs 12.7x), PEG 0.59 vs 0.95 |
| Quality / Margins | RJF | 13.4% net margin vs LPLA's 5.1% |
| Stability / Safety | RJF | Beta 1.03 vs LPLA's 1.30, lower leverage |
| Dividends | RJF | 1.3% yield; 22-year raise streak; LPLA pays no meaningful dividend |
| Momentum (1Y) | RJF | +0.3% vs LPLA's -18.9% |
| Efficiency (ROA) | LPLA | 4.7% ROA vs RJF's 2.4%, ROIC 16.1% vs 20.9% |
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.
Raymond James Financial is a diversified financial services firm that provides wealth management, investment banking, and banking services to individuals, corporations, and institutions. It generates revenue primarily through its Private Client Group — which contributes roughly 60% of earnings via fees and commissions — along with Capital Markets investment banking and trading, Asset Management fees, and banking interest income. The company's key advantage is its integrated advisor-centric model that combines independent and employee advisors with full-service banking and capital markets capabilities under one roof.
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
RJF leads in 6 of 6 categories — strongest in Financial Metrics and Valuation Metrics.
Financial Metrics (TTM)
LPLA and RJF operate at a comparable scale, with $17.0B and $15.9B in trailing revenue. RJF is the more profitable business, keeping 13.4% of every revenue dollar as net income compared to LPLA's 5.1%.
| Metric | LPLALPL Financial Hol… | RJFRaymond James Fin… |
|---|---|---|
| RevenueTrailing 12 months | $17.0B | $15.9B |
| EBITDAEarnings before interest/tax | $2.3B | $2.8B |
| Net IncomeAfter-tax profit | $863M | $2.1B |
| Free Cash FlowCash after capex | -$1.6B | $1.5B |
| Gross MarginGross profit ÷ Revenue | +25.6% | +88.2% |
| Operating MarginEBIT ÷ Revenue | +13.4% | +28.7% |
| Net MarginNet income ÷ Revenue | +5.1% | +13.4% |
| FCF MarginFCF ÷ Revenue | — | +14.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +4.2% | -2.4% |
Valuation Metrics
At 14.9x trailing earnings, RJF trades at a 46% valuation discount to LPLA's 27.5x P/E. Adjusting for growth (PEG ratio), RJF offers better value at 0.69x vs LPLA's 2.07x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | LPLALPL Financial Hol… | RJFRaymond James Fin… |
|---|---|---|
| Market CapShares × price | $24.0B | $30.3B |
| Enterprise ValueMkt cap + debt − cash | $30.3B | $23.5B |
| Trailing P/EPrice ÷ TTM EPS | 27.51x | 14.86x |
| Forward P/EPrice ÷ next-FY EPS est. | 12.65x | 12.63x |
| PEG RatioP/E ÷ EPS growth rate | 2.07x | 0.69x |
| EV / EBITDAEnterprise value multiple | 10.38x | 4.94x |
| Price / SalesMarket cap ÷ Revenue | 1.42x | 1.91x |
| Price / BookPrice ÷ Book value/share | 4.44x | 2.53x |
| Price / FCFMarket cap ÷ FCF | — | 13.50x |
Profitability & Efficiency
RJF delivers a 16.8% return on equity — every $100 of shareholder capital generates $17 in annual profit, vs $16 for LPLA. RJF carries lower financial leverage with a 0.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to LPLA's 1.36x. On the Piotroski fundamental quality scale (0–9), RJF scores 6/9 vs LPLA's 2/9, reflecting solid financial health.
| Metric | LPLALPL Financial Hol… | RJFRaymond James Fin… |
|---|---|---|
| ROE (TTM)Return on equity | +16.1% | +16.8% |
| ROA (TTM)Return on assets | +4.7% | +2.4% |
| ROICReturn on invested capital | +16.1% | +20.9% |
| ROCEReturn on capital employed | +19.1% | +22.0% |
| Piotroski ScoreFundamental quality 0–9 | 2 | 6 |
| Debt / EquityFinancial leverage | 1.36x | 0.36x |
| Net DebtTotal debt minus cash | $4.2B | -$6.8B |
| Cash & Equiv.Liquid assets | $1.0B | $11.4B |
| Total DebtShort + long-term debt | $7.3B | $4.5B |
| Interest CoverageEBIT ÷ Interest expense | 3.85x | 1.50x |
Total Returns (with DRIP)
A $10,000 investment in LPLA five years ago would be worth $22,612 today (with dividends reinvested), compared to $19,983 for RJF. Over the past 12 months, RJF leads with a +0.3% total return vs LPLA's -18.9%. The 3-year compound annual growth rate (CAGR) favors RJF at 13.5% vs LPLA's 6.8% — a key indicator of consistent wealth creation.
| Metric | LPLALPL Financial Hol… | RJFRaymond James Fin… |
|---|---|---|
| YTD ReturnYear-to-date | -16.9% | -6.1% |
| 1-Year ReturnPast 12 months | -18.9% | +0.3% |
| 3-Year ReturnCumulative with dividends | +21.8% | +46.3% |
| 5-Year ReturnCumulative with dividends | +126.1% | +99.8% |
| 10-Year ReturnCumulative with dividends | +1437.2% | +464.9% |
| CAGR (3Y)Annualised 3-year return | +6.8% | +13.5% |
Risk & Volatility
RJF is the less volatile stock with a 1.03 beta — it tends to amplify market swings less than LPLA's 1.30 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. RJF currently trades 86.2% 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… | RJFRaymond James Fin… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 1.30x | 1.03x |
| 52-Week HighHighest price in past year | $403.58 | $177.66 |
| 52-Week LowLowest price in past year | $262.83 | $117.57 |
| % of 52W HighCurrent price vs 52-week peak | +74.4% | +86.2% |
| RSI (14)Momentum oscillator 0–100 | 38.5 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 712K | 1.1M |
Analyst Outlook
Wall Street rates LPLA as "Buy" and RJF as "Hold". Consensus price targets imply 52.9% upside for LPLA (target: $459) vs 22.2% for RJF (target: $187). RJF is the only dividend payer here at 1.32% yield — a key consideration for income-focused portfolios.
| Metric | LPLALPL Financial Hol… | RJFRaymond James Fin… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $459.17 | $187.00 |
| # AnalystsCovering analysts | 22 | 23 |
| Dividend YieldAnnual dividend ÷ price | — | +1.3% |
| Dividend StreakConsecutive years of raises | 3 | 22 |
| Dividend / ShareAnnual DPS | — | $2.01 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +4.2% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 100 | 456.16 | +356.2% |
| Raymond James Finan… (RJF) | 100 | 288.07 | +188.1% |
LPL Financial Holdi… (LPLA) returned +126% over 5 years vs Raymond James Finan… (RJF)'s +100%. 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 |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | $4.0B | $17.0B | +319.6% |
| Raymond James Finan… (RJF) | $5.5B | $15.9B | +191.4% |
LPL Financial Holdings Inc.'s revenue grew from $4.0B (2016) to $17.0B (2025) — a 17.3% CAGR. Raymond James Financial, Inc.'s revenue grew from $5.5B (2016) to $15.9B (2025) — a 12.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 4.7% | 5.1% | +7.2% |
| Raymond James Finan… (RJF) | 9.7% | 13.4% | +38.4% |
LPL Financial Holdings Inc.'s net margin went from 5% (2016) to 5% (2025). Raymond James Financial, Inc.'s net margin went from 10% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 22.1 | 32.7 | +48.0% |
| Raymond James Finan… (RJF) | 20.6 | 15.6 | -24.3% |
LPL Financial Holdings Inc. has traded in a 13x–33x P/E range over 9 years; current trailing P/E is ~28x. Raymond James Financial, Inc. has traded in a 13x–21x P/E range over 9 years; current trailing P/E is ~15x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| LPL Financial Holdi… (LPLA) | 2.13 | 10.92 | +412.7% |
| Raymond James Finan… (RJF) | 2.44 | 10.3 | +322.1% |
LPL Financial Holdings Inc.'s EPS grew from $2.13 (2016) to $10.92 (2025) — a 20% CAGR. Raymond James Financial, Inc.'s EPS grew from $2.44 (2016) to $10.30 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
LPL Financial Holdings Inc. generated $0M FCF in 2025 (-100% vs 2021). Raymond James Financial, Inc. generated $2B FCF in 2025 (-66% vs 2021).
LPLA vs RJF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is LPLA or RJF a better buy right now?
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 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 RJF?
On trailing P/E, Raymond James Financial, Inc. (RJF) is the cheapest at 14.9x versus LPL Financial Holdings Inc. at 27.5x. On forward P/E, Raymond James Financial, Inc. is actually cheaper at 12.6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Raymond James Financial, Inc. wins at 0.59x 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 — LPLA or RJF?
Over the past 5 years, LPL Financial Holdings Inc. (LPLA) delivered a total return of +126.1%, compared to +99.8% for Raymond James Financial, Inc. (RJF). 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 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.
04Which is safer — LPLA or RJF?
By beta (market sensitivity over 5 years), Raymond James Financial, Inc. (RJF) is the lower-risk stock at 1.03β versus LPL Financial Holdings Inc.'s 1.30β — meaning LPLA is approximately 26% more volatile than RJF relative to the S&P 500. On balance sheet safety, Raymond James Financial, Inc. (RJF) carries a lower debt/equity ratio of 36% versus 136% for LPL Financial Holdings Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — LPLA or RJF?
Raymond James Financial, Inc. (RJF) is the more profitable company, earning 13.4% net margin versus 5.1% for LPL Financial Holdings Inc. — meaning it keeps 13.4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RJF leads at 28.7% versus 13.4% for LPLA. 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.
06Is LPLA or RJF 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, Raymond James Financial, Inc. (RJF) is the more undervalued stock at a PEG of 0.59x 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, Raymond James Financial, Inc. (RJF) trades at 12.6x forward P/E versus 12.7x for LPL Financial Holdings Inc. — 0.0x 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 RJF?
In this comparison, RJF (1.3% yield) pays a dividend. LPLA does not pay a meaningful dividend and should not be held primarily for income.
08Is LPLA or RJF better for a retirement portfolio?
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). Both have compounded well over 10 years (RJF: +464.9%, LPLA: +1437%), 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 RJF?
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: LPLA is a mid-cap quality compounder stock; RJF is a mid-cap deep-value stock. RJF pays 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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