LPL Financial (NASDAQ:LPLA – Get Free Report) and Chindata Group (NASDAQ:CD – Get Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Volatility and Risk
LPL Financial has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Chindata Group has a beta of 5.23, suggesting that its stock price is 423% more volatile than the S&P 500.
Earnings and Valuation
This table compares LPL Financial and Chindata Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LPL Financial | $19.61 billion | 1.42 | $863.02 million | $12.54 | 28.21 |
| Chindata Group | $2.58 million | 125.39 | -$5.10 million | ($0.03) | -98.00 |
LPL Financial has higher revenue and earnings than Chindata Group. Chindata Group is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent recommendations and price targets for LPL Financial and Chindata Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LPL Financial | 0 | 5 | 12 | 0 | 2.71 |
| Chindata Group | 1 | 0 | 0 | 0 | 1.00 |
LPL Financial currently has a consensus price target of $405.79, suggesting a potential upside of 14.70%. Given LPL Financial’s stronger consensus rating and higher possible upside, equities research analysts clearly believe LPL Financial is more favorable than Chindata Group.
Profitability
This table compares LPL Financial and Chindata Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LPL Financial | 5.13% | 32.20% | 9.35% |
| Chindata Group | N/A | N/A | N/A |
Insider & Institutional Ownership
95.7% of LPL Financial shares are held by institutional investors. Comparatively, 30.8% of Chindata Group shares are held by institutional investors. 0.6% of LPL Financial shares are held by company insiders. Comparatively, 5.5% of Chindata Group shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Summary
LPL Financial beats Chindata Group on 11 of the 14 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 Chindata Group
Chindata Group Holdings Limited provides carrier-neutral hyperscale data center solutions in Mainland China, India, and Southeast Asia. It offers artificial intelligence, cloud computing, smart cities and homes, online entertainment, and other on-demand services. The company also provides internet data center colocation and rental services; and technical and consulting services. Its integrated data center solutions include infrastructure, power supply, connectivity and operation and maintenance, and tailor-made to their scale and requirements throughout the planning, design, construction, and operation process. The company was formerly known as BCPE Bridge Stack Limited and changed its name to Chindata Group Holdings Limited in April 2020. Chindata Group Holdings Limited was founded in 2015 and is headquartered in Beijing, China.
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