Capital Financial (OTCMKTS:CPFH) and LPL Financial (NASDAQ:LPLA) Financial Survey

LPL Financial (NASDAQ:LPLA) and Capital Financial (OTCMKTS:CPFH) are both finance companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, earnings, valuation, profitability, risk and dividends.

Institutional & Insider Ownership

95.7% of LPL Financial shares are held by institutional investors. 1.3% of LPL Financial shares are held by company insiders. Comparatively, 54.0% of Capital Financial shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for LPL Financial and Capital Financial, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LPL Financial	0	7	9	1	2.65
Capital Financial	0	0	0	0	0.00

LPL Financial currently has a consensus target price of $430.13, indicating a potential upside of 19.54%. Given LPL Financial’s stronger consensus rating and higher probable upside, research analysts plainly believe LPL Financial is more favorable than Capital Financial.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LPL Financial	5.35%	36.80%	9.48%
Capital Financial	N/A	N/A	N/A

Earnings and Valuation

This table compares LPL Financial and Capital Financial”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LPL Financial	$12.39 billion	2.33	$1.06 billion	$10.86	33.13
Capital Financial	N/A	N/A	N/A	N/A	N/A

LPL Financial has higher revenue and earnings than Capital Financial.

Summary

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

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.

About Capital Financial

Capital Financial Holdings, Inc., a full-service brokerage company, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.