Compare Raymond James Financial, Inc. (RJF) vs The Charles Schwab Corporation (SCHW) vs Robinhood Markets, Inc. (HOOD) vs Futu Holdings Limited (FUTU) vs LPL Financial Holdings Inc. (LPLA) 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 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.

On trailing P/E, Raymond James Financial, Inc. (RJF) is the cheapest at 14.9x versus Robinhood Markets, Inc. at 48.6x. 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 The Charles Schwab Corporation's 7.08x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, LPL Financial Holdings Inc. (LPLA) delivered a total return of +126.1%, compared to -9.0% for Futu Holdings Limited (FUTU). 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 HOOD's +117.8%. 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), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.88β versus Robinhood Markets, Inc.'s 2.62β — meaning HOOD is approximately 199% more volatile than SCHW relative to the S&P 500. On balance sheet safety, Futu Holdings Limited (FUTU) carries a lower debt/equity ratio of 31% versus 136% for LPL Financial Holdings Inc. — giving it more financial flexibility in a downturn.

Robinhood Markets, Inc. (HOOD) is the more profitable company, earning 47.8% net margin versus 5.1% for LPL Financial Holdings Inc. — meaning it keeps 47.8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: FUTU leads at 48.7% 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.

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 The Charles Schwab Corporation's 7.08x. 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 31.6x for Robinhood Markets, Inc. — 29.9x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HOOD: 75.1% to $132.80.

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

For long-horizon retirement investors, The Charles Schwab Corporation (SCHW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.88), 1.3% yield, +309.4% 10Y return). Robinhood Markets, Inc. (HOOD) carries a higher beta of 2.62 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (SCHW: +309.4%, HOOD: +117.8%), 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: RJF is a mid-cap deep-value stock; SCHW is a mid-cap quality compounder stock; HOOD is a mid-cap quality compounder stock; FUTU is a mid-cap quality compounder stock; LPLA is a mid-cap quality compounder stock. RJF, SCHW pay a dividend while HOOD, FUTU, LPLA do 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.