Forge Global (NYSE:FRGE) & LPL Financial (NASDAQ:LPLA) Head to Head Survey

Forge Global (NYSE:FRGEGet Rating) and LPL Financial (NASDAQ:LPLAGet Rating) are both finance companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Profitability

This table compares Forge Global and LPL Financial’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Forge Global N/A -46.73% 2.25%
LPL Financial 5.96% 36.57% 7.81%

Earnings and Valuation

This table compares Forge Global and LPL Financial’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Forge Global N/A N/A $9.36 million N/A N/A
LPL Financial $7.72 billion 2.23 $459.87 million $5.63 38.23

LPL Financial has higher revenue and earnings than Forge Global.

Institutional and Insider Ownership

73.8% of Forge Global shares are held by institutional investors. Comparatively, 98.7% of LPL Financial shares are held by institutional investors. 1.9% of LPL Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

Forge Global has a beta of 2.78, meaning that its share price is 178% more volatile than the S&P 500. Comparatively, LPL Financial has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Forge Global and LPL Financial, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Forge Global 0 0 0 0 N/A
LPL Financial 0 2 6 0 2.75

LPL Financial has a consensus target price of $216.86, indicating a potential upside of 0.75%. Given LPL Financial’s higher possible upside, analysts clearly believe LPL Financial is more favorable than Forge Global.

Summary

LPL Financial beats Forge Global on 9 of the 10 factors compared between the two stocks.

About Forge Global (Get Rating)

Forge Global Holdings, Inc. provides marketplace infrastructure, data services, and technology solutions for private market participants. It enables private company shareholders to trade private company shares with accredited investors. The company was founded in 2014 and is based in San Francisco, California.

About LPL Financial (Get Rating)

LPL Financial Holdings Inc., together with its subsidiaries, provides an integrated platform of brokerage and investment advisory services to independent financial advisors and financial advisors at financial institutions in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, retirement and education savings plans, fixed income, and insurance, as well as alternative investments, such as non-traded real estate investment trusts and auction rate notes. The company also provides advisory platforms that provide access to mutual funds, exchange-traded funds, stocks, bonds, certain option strategies, unit investment trusts, and institutional money managers and no-load multi-manager variable annuities. In addition, it offers money market programs; and retirement solutions for commission-and fee-based services that allow advisors to provide brokerage services, consultation, and advice to retirement plan sponsors. Further, the company provides other services comprising tools and services that enable advisors to maintain and grow their practices; trust, investment management oversight, and custodial services to trusts for estates and families, as well as insurance brokerage general agency services; and technology products, such as proposal generation, investment analytics, and portfolio modeling. The company was formerly known as LPL Investment Holdings Inc. and changed its name to LPL Financial Holdings Inc. in June 2012. LPL Financial Holdings Inc. was founded in 1989 and is based in San Diego, California.

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