Compare XP Inc. (XP) vs Raymond James Financial, Inc. (RJF) Stock

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.

On trailing P/E, XP Inc. (XP) is the cheapest at 13.5x versus Raymond James Financial, Inc. at 14.9x. 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 Raymond James Financial, Inc.'s 0.59x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Raymond James Financial, Inc. (RJF) delivered a total return of +99.8%, compared to -46.3% for XP Inc. (XP). 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 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.

By beta (market sensitivity over 5 years), XP Inc. (XP) is the lower-risk stock at 0.83β versus Raymond James Financial, Inc.'s 1.03β — meaning RJF is approximately 23% more volatile than XP relative to the S&P 500. On balance sheet safety, Raymond James Financial, Inc. (RJF) carries a lower debt/equity ratio of 36% versus 6% for XP Inc. — giving it more financial flexibility in a downturn.

XP Inc. (XP) is the more profitable company, earning 22.7% net margin versus 13.4% for Raymond James Financial, Inc. — meaning it keeps 22.7% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: RJF leads at 28.7% versus -19.7% for XP. 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, XP Inc. (XP) is the more undervalued stock at a PEG of 0.06x versus Raymond James Financial, Inc.'s 0.59x. 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 12.6x for Raymond James Financial, Inc. — 10.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for RJF: 22.2% to $187.00.

All stocks in this comparison pay dividends. XP Inc. (XP) offers the highest yield at 3.3%, versus 1.3% for Raymond James Financial, Inc. (RJF).

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%, 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.

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.