WallStSmart

LPL Financial Holdings Inc (LPLA)vsMorgan Stanley (MS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Morgan Stanley generates 324% more annual revenue ($70.30B vs $16.59B). MS leads profitability with a 24.0% profit margin vs 5.2%. LPLA appears more attractively valued with a PEG of 0.40. MS earns a higher WallStSmart Score of 76/100 (B+).

LPLA

Strong Buy

68

out of 100

Grade: B-

Growth: 8.0Profit: 6.0Value: 7.3Quality: 5.0
Piotroski: 1/9Altman Z: 1.77

MS

Strong Buy

76

out of 100

Grade: B+

Growth: 8.0Profit: 7.5Value: 10.0Quality: 4.8
Piotroski: 3/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LPLASignificantly Overvalued (-119.2%)

Margin of Safety

-119.2%

Fair Value

$154.49

Current Price

$300.68

$146.19 premium

UndervaluedFair: $154.49Overvalued
MSUndervalued (+59.3%)

Margin of Safety

+59.3%

Fair Value

$407.18

Current Price

$165.65

$241.53 discount

UndervaluedFair: $407.18Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LPLA3 strengths · Avg: 9.7/10
PEG RatioValuation
0.4010/10

Growing faster than its price suggests

Revenue GrowthGrowth
41.8%10/10

Revenue surging 41.8% year-over-year

Return on EquityProfitability
20.9%9/10

Every $100 of equity generates 21 in profit

MS6 strengths · Avg: 8.8/10
Market CapQuality
$263.03B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
38.6%10/10

Strong operational efficiency at 38.6%

Profit MarginProfitability
24.0%9/10

Keeps 24 of every $100 in revenue as profit

P/E RatioValuation
16.2x8/10

Attractively priced relative to earnings

Price/BookValuation
2.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
20.7%8/10

Earnings expanding 20.7% YoY

Areas to Watch

LPLA4 concerns · Avg: 3.8/10
P/E RatioValuation
27.5x4/10

Moderate valuation

EPS GrowthGrowth
4.6%4/10

4.6% earnings growth

Altman Z-ScoreHealth
1.774/10

Distress zone — elevated risk

Profit MarginProfitability
5.2%3/10

5.2% margin — thin

MS3 concerns · Avg: 3.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Free Cash FlowQuality
$-4.60B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : LPLA

The strongest argument for LPLA centers on PEG Ratio, Revenue Growth, Return on Equity. Revenue growth of 41.8% demonstrates continued momentum. PEG of 0.40 suggests the stock is reasonably priced for its growth.

Bull Case : MS

The strongest argument for MS centers on Market Cap, Operating Margin, Profit Margin. Profitability is solid with margins at 24.0% and operating margin at 38.6%. Revenue growth of 11.0% demonstrates continued momentum.

Bear Case : LPLA

The primary concerns for LPLA are P/E Ratio, EPS Growth, Altman Z-Score.

Bear Case : MS

The primary concerns for MS are PEG Ratio, Piotroski F-Score, Free Cash Flow.

Key Dynamics to Monitor

LPLA profiles as a hypergrowth stock while MS is a mature play — different risk/reward profiles.

MS carries more volatility with a beta of 1.21 — expect wider price swings.

LPLA is growing revenue faster at 41.8% — sustainability is the question.

LPLA generates stronger free cash flow (490M), providing more financial flexibility.

Bottom Line

MS scores higher overall (76/100 vs 68/100), backed by strong 24.0% margins and 11.0% revenue growth. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

LPL Financial Holdings Inc

FINANCIAL SERVICES · CAPITAL MARKETS · USA

LPL Financial Holdings Inc., provides an integrated platform of brokerage and investment advisory services to independent financial advisers and financial advisers at financial institutions in the United States. The company is headquartered in San Diego, California.

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Morgan Stanley

FINANCIAL SERVICES · CAPITAL MARKETS · USA

Morgan Stanley is an American multinational investment bank and financial services company headquartered at 1585 Broadway in the Morgan Stanley Building, Midtown Manhattan, New York City.

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