Analyzing LPL Financial (NASDAQ:LPLA) and Forge Global (NYSE:FRGE)

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

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LPL Financial $7.72 billion 1.98 $459.87 million $5.68 33.65
Forge Global N/A N/A $9.36 million N/A N/A

LPL Financial has higher revenue and earnings than Forge Global.

Insider and Institutional Ownership

96.1% of LPL Financial shares are held by institutional investors. 1.6% of LPL Financial shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk & Volatility

LPL Financial has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Forge Global has a beta of 3.94, meaning that its stock price is 294% more volatile than the S&P 500.

Analyst Ratings

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

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

LPL Financial presently has a consensus price target of $221.14, suggesting a potential upside of 15.71%. Given LPL Financial’s higher probable upside, research analysts plainly believe LPL Financial is more favorable than Forge Global.

Profitability

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

Net Margins Return on Equity Return on Assets
LPL Financial 5.74% 36.49% 7.76%
Forge Global N/A -46.73% 2.25%

Summary

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

LPL Financial Company Profile (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.

Forge Global Company Profile (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.

Receive News & Ratings for LPL Financial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LPL Financial and related companies with MarketBeat.com's FREE daily email newsletter.