Comprehensive Stock Comparison
Compare MarketAxess Holdings Inc. (MKTX) vs The Charles Schwab Corporation (SCHW) 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 | MKTX | 8.6% revenue growth vs SCHW's 1.9% |
| Value | MKTX | PEG 3.82 vs 7.08 |
| Quality / Margins | MKTX | 33.6% net margin vs SCHW's 22.9% |
| Stability / Safety | MKTX | Lower D/E ratio (5.2% vs 93.3%) |
| Dividends | MKTX | 1.6% yield, 11-year raise streak, vs SCHW's 1.3% |
| Momentum (1Y) | SCHW | +21.1% vs MKTX's +1.2% |
| Efficiency (ROA) | SCHW | 232.8% ROA vs MKTX's 10.9%, ROIC 6.0% vs 18.0% |
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
MarketAxess operates an electronic trading platform for institutional fixed-income securities. It generates revenue primarily from transaction fees on bond trades—with U.S. investment-grade bonds being its largest segment—and from market data and technology services. The company's competitive moat lies in its Open Trading network, which creates an all-to-all anonymous liquidity pool that attracts both buy-side and sell-side participants.
Charles Schwab is a major financial services firm that operates as a discount brokerage, wealth manager, and bank for individual investors and financial advisors. It generates revenue primarily from net interest income on client cash balances (roughly 50%), asset management fees on its proprietary funds and advisory services, and trading commissions. The company's key competitive advantage is its massive scale in client assets—over $8 trillion—which creates a powerful network effect and allows it to offer low-cost services while maintaining profitability.
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
MKTX leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). SCHW leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
SCHW is the larger business by revenue, generating $26.0B annually — 31.8x MKTX's $817M. MKTX is the more profitable business, keeping 33.6% of every revenue dollar as net income compared to SCHW's 22.9%.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| RevenueTrailing 12 months | $817M | $26.0B |
| EBITDAEarnings before interest/tax | $429M | $12.8B |
| Net IncomeAfter-tax profit | $220M | $8.9B |
| Free Cash FlowCash after capex | $346M | $9.7B |
| Gross MarginGross profit ÷ Revenue | +68.9% | +75.4% |
| Operating MarginEBIT ÷ Revenue | +41.7% | +29.6% |
| Net MarginNet income ÷ Revenue | +33.6% | +22.9% |
| FCF MarginFCF ÷ Revenue | +45.9% | +7.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | -3.2% | +41.5% |
Valuation Metrics
At 26.4x trailing earnings, MKTX trades at a 17% valuation discount to SCHW's 31.8x P/E. Adjusting for growth (PEG ratio), MKTX offers better value at 4.28x vs SCHW's 13.91x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| Market CapShares × price | $7.1B | $169.2B |
| Enterprise ValueMkt cap + debt − cash | $6.7B | $172.2B |
| Trailing P/EPrice ÷ TTM EPS | 26.37x | 31.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 23.53x | 16.22x |
| PEG RatioP/E ÷ EPS growth rate | 4.28x | 13.91x |
| EV / EBITDAEnterprise value multiple | 15.81x | 18.87x |
| Price / SalesMarket cap ÷ Revenue | 8.73x | 6.51x |
| Price / BookPrice ÷ Book value/share | 5.21x | 3.61x |
| Price / FCFMarket cap ÷ FCF | 19.01x | 82.52x |
Profitability & Efficiency
SCHW delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $16 for MKTX. MKTX carries lower financial leverage with a 0.05x debt-to-equity ratio, signaling a more conservative balance sheet compared to SCHW's 0.93x. On the Piotroski fundamental quality scale (0–9), SCHW scores 7/9 vs MKTX's 6/9, reflecting strong financial health.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| ROE (TTM)Return on equity | +15.8% | +2.9% |
| ROA (TTM)Return on assets | +10.9% | +2.3% |
| ROICReturn on invested capital | +18.0% | +6.0% |
| ROCEReturn on capital employed | +23.0% | +9.5% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 7 |
| Debt / EquityFinancial leverage | 0.05x | 0.93x |
| Net DebtTotal debt minus cash | -$472M | $3.1B |
| Cash & Equiv.Liquid assets | $544M | $42.1B |
| Total DebtShort + long-term debt | $73M | $45.1B |
| Interest CoverageEBIT ÷ Interest expense | 443.10x | 3.05x |
Total Returns (with DRIP)
A $10,000 investment in SCHW five years ago would be worth $15,597 today (with dividends reinvested), compared to $3,565 for MKTX. Over the past 12 months, SCHW leads with a +21.1% total return vs MKTX's +1.2%. The 3-year compound annual growth rate (CAGR) favors SCHW at 8.1% vs MKTX's -16.2% — a key indicator of consistent wealth creation.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| YTD ReturnYear-to-date | +8.0% | -6.0% |
| 1-Year ReturnPast 12 months | +1.2% | +21.1% |
| 3-Year ReturnCumulative with dividends | -41.2% | +26.2% |
| 5-Year ReturnCumulative with dividends | -64.3% | +56.0% |
| 10-Year ReturnCumulative with dividends | +81.8% | +309.4% |
| CAGR (3Y)Annualised 3-year return | -16.2% | +8.1% |
Risk & Volatility
MKTX is the less volatile stock with a -0.24 beta — it tends to amplify market swings less than SCHW's 0.88 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. SCHW currently trades 88.6% from its 52-week high vs MKTX's 82.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | -0.24x | 0.88x |
| 52-Week HighHighest price in past year | $232.84 | $107.50 |
| 52-Week LowLowest price in past year | $156.17 | $65.88 |
| % of 52W HighCurrent price vs 52-week peak | +82.5% | +88.6% |
| RSI (14)Momentum oscillator 0–100 | 66.5 | 48.7 |
| Avg Volume (50D)Average daily shares traded | 491K | 9.0M |
Analyst Outlook
Wall Street rates MKTX as "Hold" and SCHW as "Buy". Consensus price targets imply 29.0% upside for SCHW (target: $123) vs -0.9% for MKTX (target: $190). For income investors, MKTX offers the higher dividend yield at 1.56% vs SCHW's 1.30%.
| Metric | MKTXMarketAxess Holdi… | SCHWThe Charles Schwa… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $190.33 | $122.78 |
| # AnalystsCovering analysts | 23 | 50 |
| Dividend YieldAnnual dividend ÷ price | +1.6% | +1.3% |
| Dividend StreakConsecutive years of raises | 11 | 0 |
| Dividend / ShareAnnual DPS | $2.99 | $1.24 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.1% | 0.0% |
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 |
|---|---|---|---|
| MarketAxess Holding… (MKTX) | 100 | 47.71 | -52.3% |
| The Charles Schwab … (SCHW) | 100 | 250.52 | +150.5% |
The Charles Schwab … (SCHW) returned +56% over 5 years vs MarketAxess Holding… (MKTX)'s -64%. A $10,000 investment in SCHW 5 years ago would be worth $15,597 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| MarketAxess Holding… (MKTX) | $303M | $817M | +169.6% |
| The Charles Schwab … (SCHW) | $6.5B | $26.0B | +299.9% |
MarketAxess Holdings Inc.'s revenue grew from $303M (2015) to $817M (2024) — a 11.6% CAGR. The Charles Schwab Corporation's revenue grew from $6.5B (2015) to $26.0B (2024) — a 16.7% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| MarketAxess Holding… (MKTX) | 31.7% | 33.6% | +5.9% |
| The Charles Schwab … (SCHW) | 22.3% | 22.9% | +2.7% |
MarketAxess Holdings Inc.'s net margin went from 32% (2015) to 34% (2024). The Charles Schwab Corporation's net margin went from 22% (2015) to 23% (2024).
Chart 4P/E Ratio History — 8 Years
| Stock | 2017 | 2024 | Change |
|---|---|---|---|
| MarketAxess Holding… (MKTX) | 51.9 | 31 | -40.3% |
| The Charles Schwab … (SCHW) | 31.9 | 24.8 | -22.3% |
MarketAxess Holdings Inc. has traded in a 31x–73x P/E range over 8 years; current trailing P/E is ~26x. The Charles Schwab Corporation has traded in a 17x–32x P/E range over 8 years; current trailing P/E is ~32x.
Chart 5EPS Growth — 10 Years
| Stock | 2015 | 2024 | Change |
|---|---|---|---|
| MarketAxess Holding… (MKTX) | 2.55 | 7.28 | +185.5% |
| The Charles Schwab … (SCHW) | 1.03 | 2.99 | +190.3% |
MarketAxess Holdings Inc.'s EPS grew from $2.55 (2015) to $7.28 (2024) — a 12% CAGR. The Charles Schwab Corporation's EPS grew from $1.03 (2015) to $2.99 (2024) — a 13% CAGR.
Chart 6Free Cash Flow — 5 Years
MarketAxess Holdings Inc. generated $375M FCF in 2024 (+62% vs 2021). The Charles Schwab Corporation generated $2B FCF in 2024 (+71% vs 2021).
MKTX vs SCHW: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is MKTX or SCHW a better buy right now?
MarketAxess Holdings Inc. (MKTX) offers the better valuation at 26.4x trailing P/E (23.5x forward), making it the more compelling value choice. Analysts rate The Charles Schwab Corporation (SCHW) a "Buy" — based on 50 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 — MKTX or SCHW?
On trailing P/E, MarketAxess Holdings Inc. (MKTX) is the cheapest at 26.4x versus The Charles Schwab Corporation at 31.8x. On forward P/E, The Charles Schwab Corporation is actually cheaper at 16.2x — 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: MarketAxess Holdings Inc. wins at 3.82x versus The Charles Schwab Corporation's 7.08x.
03Which is the better long-term investment — MKTX or SCHW?
Over the past 5 years, The Charles Schwab Corporation (SCHW) delivered a total return of +56.0%, compared to -64.3% for MarketAxess Holdings Inc. (MKTX). A $10,000 investment in SCHW five years ago would be worth approximately $16K today (assuming dividends reinvested). Over 10 years, the gap is even starker: SCHW returned +309.4% versus MKTX's +81.8%. 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 — MKTX or SCHW?
By beta (market sensitivity over 5 years), MarketAxess Holdings Inc. (MKTX) is the lower-risk stock at -0.24β versus The Charles Schwab Corporation's 0.88β — meaning SCHW is approximately -473% more volatile than MKTX relative to the S&P 500. On balance sheet safety, MarketAxess Holdings Inc. (MKTX) carries a lower debt/equity ratio of 5% versus 93% for The Charles Schwab Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — MKTX or SCHW?
MarketAxess Holdings Inc. (MKTX) is the more profitable company, earning 33.6% net margin versus 22.9% for The Charles Schwab Corporation — meaning it keeps 33.6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: MKTX leads at 41.7% versus 29.6% for SCHW. At the gross margin level — before operating expenses — SCHW leads at 75.4%, 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 MKTX or SCHW 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, MarketAxess Holdings Inc. (MKTX) is the more undervalued stock at a PEG of 3.82x versus The Charles Schwab Corporation's 7.08x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, The Charles Schwab Corporation (SCHW) trades at 16.2x forward P/E versus 23.5x for MarketAxess Holdings Inc. — 7.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SCHW: 29.0% to $122.78.
07Which pays a better dividend — MKTX or SCHW?
All stocks in this comparison pay dividends. MarketAxess Holdings Inc. (MKTX) offers the highest yield at 1.6%, versus 1.3% for The Charles Schwab Corporation (SCHW).
08Is MKTX or SCHW better for a retirement portfolio?
For long-horizon retirement investors, MarketAxess Holdings Inc. (MKTX) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β -0.24), 1.6% yield). Both have compounded well over 10 years (MKTX: +81.8%, SCHW: +309.4%), 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 MKTX and SCHW?
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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