Comprehensive Stock Comparison
Compare XP Inc. (XP) vs LPL Financial Holdings Inc. (LPLA) 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 XP's 34.1% |
| Value | XP | Lower P/E (1.9x vs 12.7x), PEG 0.06 vs 0.95 |
| Quality / Margins | XP | 22.7% net margin vs LPLA's 5.1% |
| Stability / Safety | XP | Beta 0.83 vs LPLA's 1.30 |
| Dividends | XP | 3.3% yield; LPLA pays no meaningful dividend |
| Momentum (1Y) | XP | +53.4% vs LPLA's -18.9% |
| Efficiency (ROA) | LPLA | 4.7% ROA vs XP's 1.3%, ROIC 16.1% vs -2.6% |
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
XP Inc. is a Brazilian financial services platform that provides investment products, brokerage services, and financial education to retail and institutional clients. It generates revenue primarily through securities brokerage commissions, asset management fees from its investment products, and advisory services for corporate and high-net-worth clients. The company's key advantage is its integrated open platform ecosystem—combining education, advisory, and execution—which creates strong client retention in Brazil's growing financial market.
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.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Segment breakdown not available.
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
XP leads in 3 of 6 categories (Valuation Metrics, Total Returns). LPLA leads in 2 (Profitability & Efficiency, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
XP and LPLA operate at a comparable scale, with $19.9B and $17.0B in trailing revenue. XP is the more profitable business, keeping 22.7% of every revenue dollar as net income compared to LPLA's 5.1%.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| RevenueTrailing 12 months | $19.9B | $17.0B |
| EBITDAEarnings before interest/tax | -$1.7B | $2.3B |
| Net IncomeAfter-tax profit | $5.1B | $863M |
| Free Cash FlowCash after capex | $17.9B | -$1.6B |
| Gross MarginGross profit ÷ Revenue | +9.5% | +25.6% |
| Operating MarginEBIT ÷ Revenue | -19.7% | +13.4% |
| Net MarginNet income ÷ Revenue | +22.7% | +5.1% |
| FCF MarginFCF ÷ Revenue | +54.6% | — |
| Rev. Growth (YoY)Latest quarter vs prior year | — | — |
| EPS Growth (YoY)Latest quarter vs prior year | +13.8% | +4.2% |
Valuation Metrics
At 13.5x trailing earnings, XP trades at a 51% valuation discount to LPLA's 27.5x P/E. Adjusting for growth (PEG ratio), XP offers better value at 0.43x vs LPLA's 2.07x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| Market CapShares × price | $8.9B | $24.0B |
| Enterprise ValueMkt cap + debt − cash | $30.2B | $30.3B |
| Trailing P/EPrice ÷ TTM EPS | 13.51x | 27.51x |
| Forward P/EPrice ÷ next-FY EPS est. | 1.89x | 12.65x |
| PEG RatioP/E ÷ EPS growth rate | 0.43x | 2.07x |
| EV / EBITDAEnterprise value multiple | — | 10.38x |
| Price / SalesMarket cap ÷ Revenue | 2.32x | 1.42x |
| Price / BookPrice ÷ Book value/share | 3.04x | 4.44x |
| Price / FCFMarket cap ÷ FCF | 4.26x | — |
Profitability & Efficiency
XP delivers a 21.4% return on equity — every $100 of shareholder capital generates $21 in annual profit, vs $16 for LPLA. LPLA carries lower financial leverage with a 1.36x debt-to-equity ratio, signaling a more conservative balance sheet compared to XP's 5.74x. On the Piotroski fundamental quality scale (0–9), XP scores 3/9 vs LPLA's 2/9, reflecting mixed financial health.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +21.4% | +16.1% |
| ROA (TTM)Return on assets | +1.3% | +4.7% |
| ROICReturn on invested capital | -2.6% | +16.1% |
| ROCEReturn on capital employed | -2.8% | +19.1% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 2 |
| Debt / EquityFinancial leverage | 5.74x | 1.36x |
| Net DebtTotal debt minus cash | $109.5B | $4.2B |
| Cash & Equiv.Liquid assets | $5.6B | $1.0B |
| Total DebtShort + long-term debt | $115.1B | $7.3B |
| Interest CoverageEBIT ÷ Interest expense | 8.55x | 3.85x |
Total Returns (with DRIP)
A $10,000 investment in LPLA five years ago would be worth $22,612 today (with dividends reinvested), compared to $5,366 for XP. Over the past 12 months, XP leads with a +53.4% total return vs LPLA's -18.9%. The 3-year compound annual growth rate (CAGR) favors XP at 24.0% vs LPLA's 6.8% — a key indicator of consistent wealth creation.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| YTD ReturnYear-to-date | +33.1% | -16.9% |
| 1-Year ReturnPast 12 months | +53.4% | -18.9% |
| 3-Year ReturnCumulative with dividends | +90.6% | +21.8% |
| 5-Year ReturnCumulative with dividends | -46.3% | +126.1% |
| 10-Year ReturnCumulative with dividends | -31.3% | +1437.2% |
| CAGR (3Y)Annualised 3-year return | +24.0% | +6.8% |
Risk & Volatility
XP is the less volatile stock with a 0.83 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. XP currently trades 93.2% from its 52-week high vs LPLA's 74.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 1.30x |
| 52-Week HighHighest price in past year | $23.11 | $403.58 |
| 52-Week LowLowest price in past year | $12.20 | $262.83 |
| % of 52W HighCurrent price vs 52-week peak | +93.2% | +74.4% |
| RSI (14)Momentum oscillator 0–100 | 60.4 | 38.5 |
| Avg Volume (50D)Average daily shares traded | 5.6M | 712K |
Analyst Outlook
Wall Street rates XP as "Buy" and LPLA as "Buy". Consensus price targets imply 52.9% upside for LPLA (target: $459) vs 9.2% for XP (target: $24). XP is the only dividend payer here at 3.34% yield — a key consideration for income-focused portfolios.
| Metric | XPXP Inc. | LPLALPL Financial Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Buy |
| Price TargetConsensus 12-month target | $23.50 | $459.17 |
| # AnalystsCovering analysts | 9 | 22 |
| Dividend YieldAnnual dividend ÷ price | +3.3% | — |
| Dividend StreakConsecutive years of raises | 0 | 3 |
| Dividend / ShareAnnual DPS | $3.72 | — |
| Buyback YieldShare repurchases ÷ mkt cap | +2.9% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Feb 20 | Feb 26 | Change |
|---|---|---|---|
| XP Inc. (XP) | 100 | 57.17 | -42.8% |
| LPL Financial Holdi… (LPLA) | 100 | 473.49 | +373.5% |
LPL Financial Holdi… (LPLA) returned +126% over 5 years vs XP Inc. (XP)'s -46%. 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 |
|---|---|---|---|
| XP Inc. (XP) | $1.2B | $19.9B | +1589.8% |
| LPL Financial Holdi… (LPLA) | $4.0B | $17.0B | +319.6% |
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 |
|---|---|---|---|
| XP Inc. (XP) | 20.7% | 22.7% | +9.6% |
| LPL Financial Holdi… (LPLA) | 4.7% | 5.1% | +7.2% |
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 |
|---|---|---|---|
| XP Inc. (XP) | 18.3 | 1.4 | -92.3% |
| LPL Financial Holdi… (LPLA) | 22.1 | 32.7 | +48.0% |
XP Inc. has traded in a 1x–18x P/E range over 6 years; current trailing P/E is ~14x. LPL Financial Holdings Inc. has traded in a 13x–33x P/E range over 9 years; current trailing P/E is ~28x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| XP Inc. (XP) | 0.44 | 8.23 | +1770.5% |
| LPL Financial Holdi… (LPLA) | 2.13 | 10.92 | +412.7% |
LPL Financial Holdings Inc.'s EPS grew from $2.13 (2016) to $10.92 (2025) — a 20% CAGR.
Chart 6Free Cash Flow — 5 Years
XP Inc. generated $11B FCF in 2024 (+348% vs 2021). LPL Financial Holdings Inc. generated $0M FCF in 2025 (-100% vs 2021).
XP vs LPLA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is XP or LPLA a better buy right now?
XP Inc. (XP) offers the better valuation at 13.5x trailing P/E (1.9x forward), making it the more compelling value choice. Analysts rate XP Inc. (XP) a "Buy" — based on 9 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 — XP or LPLA?
On trailing P/E, XP Inc. (XP) is the cheapest at 13.5x versus LPL Financial Holdings Inc. at 27.5x. On forward P/E, XP Inc. is actually cheaper at 1.9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: XP Inc. wins at 0.06x 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 — XP or LPLA?
Over the past 5 years, LPL Financial Holdings Inc. (LPLA) delivered a total return of +126.1%, compared to -46.3% for XP Inc. (XP). 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 XP's -31.3%. 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 — XP or LPLA?
By beta (market sensitivity over 5 years), XP Inc. (XP) is the lower-risk stock at 0.83β versus LPL Financial Holdings Inc.'s 1.30β — meaning LPLA is approximately 56% more volatile than XP relative to the S&P 500. On balance sheet safety, LPL Financial Holdings Inc. (LPLA) carries a lower debt/equity ratio of 136% versus 6% for XP Inc. — giving it more financial flexibility in a downturn.
05Which has better profit margins — XP or LPLA?
XP Inc. (XP) is the more profitable company, earning 22.7% net margin versus 5.1% for LPL Financial Holdings Inc. — meaning it keeps 22.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LPLA leads at 13.4% versus -19.7% for XP. At the gross margin level — before operating expenses — LPLA leads at 25.6%, 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 XP or LPLA 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, XP Inc. (XP) is the more undervalued stock at a PEG of 0.06x 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, XP Inc. (XP) trades at 1.9x forward P/E versus 12.7x for LPL Financial Holdings Inc. — 10.8x 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 — XP or LPLA?
In this comparison, XP (3.3% yield) pays a dividend. LPLA does not pay a meaningful dividend and should not be held primarily for income.
08Is XP or LPLA 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%, XP: -31.3%), 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 XP and LPLA?
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: XP is a small-cap deep-value stock; LPLA is a mid-cap quality compounder stock. XP 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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