Siebert Financial (NASDAQ:SIEB – Get Free Report) and LPL Financial (NASDAQ:LPLA – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Insider and Institutional Ownership
1.5% of Siebert Financial shares are held by institutional investors. Comparatively, 95.7% of LPL Financial shares are held by institutional investors. 46.0% of Siebert Financial shares are held by company insiders. Comparatively, 0.6% of LPL Financial shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Profitability
This table compares Siebert Financial and LPL Financial’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Siebert Financial | -6.21% | -6.14% | -0.87% |
| LPL Financial | 4.93% | 31.26% | 9.08% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Siebert Financial | 1 | 0 | 0 | 0 | 1.00 |
| LPL Financial | 0 | 4 | 10 | 1 | 2.80 |
LPL Financial has a consensus price target of $397.92, indicating a potential upside of 20.30%. Given LPL Financial’s stronger consensus rating and higher possible upside, analysts plainly believe LPL Financial is more favorable than Siebert Financial.
Earnings and Valuation
This table compares Siebert Financial and LPL Financial”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Siebert Financial | $94.20 million | 0.72 | $5.12 million | ($0.14) | -11.79 |
| LPL Financial | $16.99 billion | 1.56 | $863.02 million | $11.20 | 29.53 |
LPL Financial has higher revenue and earnings than Siebert Financial. Siebert Financial is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Siebert Financial has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, LPL Financial has a beta of 0.5, suggesting that its stock price is 50% less volatile than the S&P 500.
Summary
LPL Financial beats Siebert Financial on 13 of the 15 factors compared between the two stocks.
About Siebert Financial
Siebert Financial Corp., through its subsidiaries, engages in the retail brokerage and investment advisory businesses in the United States and Internationally. It offers self-directed trading, market making and fixed income investment, stock borrow, stock loan, equity compensation plans, wealth management, and financial advisory services; independent retail execution services; and retail customer services. The company also offers self-directed retirement accounts, as well as lends customers a portion of the market value of marginable securities held in the customer's account. In addition, the company provides data technology platform that offers various services, such as email and messaging, market data systems and third party trading systems, business productivity tools, and customer relationship management systems. Further, it offers a Robo-Advisor platform that provides clients with an automated wealth management solution; and various insurance products, such as fixed annuities, personal insurance, property and casualty insurance, natural disaster insurance, and life and disability. Siebert Financial Corp. was incorporated in 1934 and is headquartered in Miami Beach, Florida.
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.
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