UP Fintech (NASDAQ:TIGR) vs. LPL Financial (NASDAQ:LPLA) Head to Head Survey

UP Fintech (NASDAQ:TIGR) and LPL Financial (NASDAQ:LPLA) are both finance companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Institutional and Insider Ownership

9.0% of UP Fintech shares are owned by institutional investors. Comparatively, 95.7% of LPL Financial shares are owned by institutional investors. 1.3% of LPL Financial shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

UP Fintech has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
UP Fintech	18.11%	13.19%	1.27%
LPL Financial	7.91%	47.01%	10.58%

Analyst Ratings

This is a summary of current recommendations and price targets for UP Fintech and LPL Financial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
UP Fintech	0	0	4	0	3.00
LPL Financial	1	1	10	0	2.75

UP Fintech currently has a consensus price target of $10.3267, indicating a potential upside of 6.46%. LPL Financial has a consensus price target of $383.5833, indicating a potential upside of 2.41%. Given UP Fintech’s stronger consensus rating and higher probable upside, analysts plainly believe UP Fintech is more favorable than LPL Financial.

Valuation & Earnings

This table compares UP Fintech and LPL Financial”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
UP Fintech	$391.54 million	4.57	$60.73 million	$0.45	21.56
LPL Financial	$14.13 billion	2.12	$1.06 billion	$14.62	25.62

LPL Financial has higher revenue and earnings than UP Fintech. UP Fintech is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.

Summary

LPL Financial beats UP Fintech on 10 of the 14 factors compared between the two stocks.

About UP Fintech

UP Fintech Holding Limited provides online brokerage services focusing on Chinese investors. The company has developed a brokerage platform, which allows investor to trade stocks, options, warrants, and other financial instruments that can be accessed through its APP and website. It offers brokerage and value-added services, including investor education, community engagement, and IR platform services. In addition, the company provides trade execution, margin financing, and securities lending services; asset management and wealth management; ESOP management; fund license application, product design, asset custody, transaction execution, and funding allocation; fund structuring and management; and IPO underwriting services. Further, it offers market information, community engagement, and simulated trading services. UP Fintech Holding Limited was founded in 2014 and is based in Beijing, China.

About LPL Financial

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 enterprises in the United States. Its brokerage offerings include variable and fixed annuities, mutual funds, equities, fixed income, alternative investments, retirement and 529 education savings plans, and insurance. The company also provides fee-based 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 products; 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 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.