Comprehensive Stock Comparison
Compare The Charles Schwab Corporation (SCHW) 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 | RJF | 7.9% revenue growth vs SCHW's 1.9% |
| Value | RJF | Lower P/E (12.6x vs 16.2x), PEG 0.59 vs 7.08 |
| Quality / Margins | SCHW | 22.9% net margin vs RJF's 13.4% |
| Stability / Safety | SCHW | Beta 0.88 vs RJF's 1.03 |
| Dividends | RJF | 1.3% yield, 22-year raise streak, vs SCHW's 1.3% |
| Momentum (1Y) | SCHW | +21.1% vs RJF's +0.3% |
| Efficiency (ROA) | SCHW | 232.8% ROA vs RJF's 2.4%, ROIC 6.0% 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
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.
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 4 of 6 categories (Valuation Metrics, Profitability & Efficiency). SCHW leads in 2 (Financial Metrics, Risk & Volatility).
Financial Metrics (TTM)
SCHW is the larger business by revenue, generating $26.0B annually — 1.6x RJF's $15.9B. SCHW is the more profitable business, keeping 22.9% of every revenue dollar as net income compared to RJF's 13.4%.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| RevenueTrailing 12 months | $26.0B | $15.9B |
| EBITDAEarnings before interest/tax | $12.8B | $2.8B |
| Net IncomeAfter-tax profit | $8.9B | $2.1B |
| Free Cash FlowCash after capex | $9.7B | $1.5B |
| Gross MarginGross profit ÷ Revenue | +75.4% | +88.2% |
| Operating MarginEBIT ÷ Revenue | +29.6% | +28.7% |
| Net MarginNet income ÷ Revenue | +22.9% | +13.4% |
| FCF MarginFCF ÷ Revenue | +7.9% | +14.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +41.5% | -2.4% |
Valuation Metrics
At 14.9x trailing earnings, RJF trades at a 53% valuation discount to SCHW's 31.8x P/E. Adjusting for growth (PEG ratio), RJF offers better value at 0.69x vs SCHW's 13.91x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| Market CapShares × price | $169.2B | $30.3B |
| Enterprise ValueMkt cap + debt − cash | $172.2B | $23.5B |
| Trailing P/EPrice ÷ TTM EPS | 31.84x | 14.86x |
| Forward P/EPrice ÷ next-FY EPS est. | 16.22x | 12.63x |
| PEG RatioP/E ÷ EPS growth rate | 13.91x | 0.69x |
| EV / EBITDAEnterprise value multiple | 18.87x | 4.94x |
| Price / SalesMarket cap ÷ Revenue | 6.51x | 1.91x |
| Price / BookPrice ÷ Book value/share | 3.61x | 2.53x |
| Price / FCFMarket cap ÷ FCF | 82.52x | 13.50x |
Profitability & Efficiency
SCHW delivers a 2.9% return on equity — every $100 of shareholder capital generates $3 in annual profit, vs $17 for RJF. RJF carries lower financial leverage with a 0.36x 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 RJF's 6/9, reflecting strong financial health.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| ROE (TTM)Return on equity | +2.9% | +16.8% |
| ROA (TTM)Return on assets | +2.3% | +2.4% |
| ROICReturn on invested capital | +6.0% | +20.9% |
| ROCEReturn on capital employed | +9.5% | +22.0% |
| Piotroski ScoreFundamental quality 0–9 | 7 | 6 |
| Debt / EquityFinancial leverage | 0.93x | 0.36x |
| Net DebtTotal debt minus cash | $3.1B | -$6.8B |
| Cash & Equiv.Liquid assets | $42.1B | $11.4B |
| Total DebtShort + long-term debt | $45.1B | $4.5B |
| Interest CoverageEBIT ÷ Interest expense | 3.05x | 1.50x |
Total Returns (with DRIP)
A $10,000 investment in RJF five years ago would be worth $19,983 today (with dividends reinvested), compared to $15,597 for SCHW. Over the past 12 months, SCHW leads with a +21.1% total return vs RJF's +0.3%. The 3-year compound annual growth rate (CAGR) favors RJF at 13.5% vs SCHW's 8.1% — a key indicator of consistent wealth creation.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| YTD ReturnYear-to-date | -6.0% | -6.1% |
| 1-Year ReturnPast 12 months | +21.1% | +0.3% |
| 3-Year ReturnCumulative with dividends | +26.2% | +46.3% |
| 5-Year ReturnCumulative with dividends | +56.0% | +99.8% |
| 10-Year ReturnCumulative with dividends | +309.4% | +464.9% |
| CAGR (3Y)Annualised 3-year return | +8.1% | +13.5% |
Risk & Volatility
SCHW is the less volatile stock with a 0.88 beta — it tends to amplify market swings less than RJF's 1.03 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.88x | 1.03x |
| 52-Week HighHighest price in past year | $107.50 | $177.66 |
| 52-Week LowLowest price in past year | $65.88 | $117.57 |
| % of 52W HighCurrent price vs 52-week peak | +88.6% | +86.2% |
| RSI (14)Momentum oscillator 0–100 | 48.7 | 46.2 |
| Avg Volume (50D)Average daily shares traded | 9.0M | 1.1M |
Analyst Outlook
Wall Street rates SCHW as "Buy" and RJF as "Hold". Consensus price targets imply 29.0% upside for SCHW (target: $123) vs 22.2% for RJF (target: $187). For income investors, RJF offers the higher dividend yield at 1.32% vs SCHW's 1.30%.
| Metric | SCHWThe Charles Schwa… | RJFRaymond James Fin… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $122.78 | $187.00 |
| # AnalystsCovering analysts | 50 | 23 |
| Dividend YieldAnnual dividend ÷ price | +1.3% | +1.3% |
| Dividend StreakConsecutive years of raises | 0 | 22 |
| Dividend / ShareAnnual DPS | $1.24 | $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 |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 100 | 250.52 | +150.5% |
| Raymond James Finan… (RJF) | 100 | 288.07 | +188.1% |
Raymond James Finan… (RJF) returned +100% over 5 years vs The Charles Schwab … (SCHW)'s +56%. A $10,000 investment in RJF 5 years ago would be worth $19,983 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| The Charles Schwab … (SCHW) | $7.6B | $26.0B | +239.9% |
| Raymond James Finan… (RJF) | $5.5B | $15.9B | +191.4% |
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 |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 24.7% | 22.9% | -7.5% |
| Raymond James Finan… (RJF) | 9.7% | 13.4% | +38.4% |
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 |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 31.9 | 24.8 | -22.3% |
| Raymond James Finan… (RJF) | 20.6 | 15.6 | -24.3% |
The Charles Schwab Corporation has traded in a 17x–32x P/E range over 8 years; current trailing P/E is ~32x. 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 |
|---|---|---|---|
| The Charles Schwab … (SCHW) | 1.31 | 2.99 | +128.2% |
| Raymond James Finan… (RJF) | 2.44 | 10.3 | +322.1% |
Raymond James Financial, Inc.'s EPS grew from $2.44 (2016) to $10.30 (2025) — a 17% CAGR.
Chart 6Free Cash Flow — 5 Years
The Charles Schwab Corporation generated $2B FCF in 2024 (+71% vs 2021). Raymond James Financial, Inc. generated $2B FCF in 2025 (-66% vs 2021).
SCHW vs RJF: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is SCHW 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 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 — SCHW or RJF?
On trailing P/E, Raymond James Financial, Inc. (RJF) is the cheapest at 14.9x versus The Charles Schwab Corporation at 31.8x. 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 The Charles Schwab Corporation's 7.08x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — SCHW or RJF?
Over the past 5 years, Raymond James Financial, Inc. (RJF) delivered a total return of +99.8%, compared to +56.0% for The Charles Schwab Corporation (SCHW). A $10,000 investment in RJF five years ago would be worth approximately $20K today (assuming dividends reinvested). Over 10 years, the gap is even starker: RJF returned +464.9% versus SCHW's +309.4%. 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 — SCHW or RJF?
By beta (market sensitivity over 5 years), The Charles Schwab Corporation (SCHW) is the lower-risk stock at 0.88β versus Raymond James Financial, Inc.'s 1.03β — meaning RJF is approximately 17% more volatile than SCHW relative to the S&P 500. On balance sheet safety, Raymond James Financial, Inc. (RJF) carries a lower debt/equity ratio of 36% versus 93% for The Charles Schwab Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — SCHW or RJF?
The Charles Schwab Corporation (SCHW) is the more profitable company, earning 22.9% net margin versus 13.4% for Raymond James Financial, Inc. — meaning it keeps 22.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: SCHW leads at 29.6% versus 28.7% for RJF. 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 SCHW 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 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, Raymond James Financial, Inc. (RJF) trades at 12.6x forward P/E versus 16.2x for The Charles Schwab Corporation — 3.6x 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 — SCHW or RJF?
All stocks in this comparison pay dividends. Raymond James Financial, Inc. (RJF) offers the highest yield at 1.3%, versus 1.3% for The Charles Schwab Corporation (SCHW).
08Is SCHW or RJF better for a retirement portfolio?
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). Both have compounded well over 10 years (SCHW: +309.4%, RJF: +464.9%), 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 SCHW 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: SCHW is a mid-cap quality compounder stock; RJF is a mid-cap deep-value 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.
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