LPL Financial vs Brown & Brown

This page compares LPL Financial and Brown & Brown, examining their business models, financial performance, and market context. It presents an impartial overview of how each firm operates, the services they offer, and the sectors they serve, to help readers understand similarities and differences in approach. Educational content, not financial advice.

This page compares LPL Financial and Brown & Brown, examining their business models, financial performance, and market context. It presents an impartial overview of how each firm operates, the service...

Comparison Snapshot

Key Financial Metrics

LPLA

Metric

BRO

$29.22B

Market Cap

$27.18B

21.70%

Potential Profit

22.87%

Buy

Analyst Rating

Hold

Why It's Moving

LPL Financial eyes another earnings beat as analysts turn bullish ahead of Thursday's report.

Zacks Earnings ESP sits at +0.06% paired with a Zacks Rank #3, pointing to heightened analyst optimism after LPL topped estimates by 16.33% and 7.13% in the last two quarters.
CEO Richard Steinmeier offloaded over 5,000 shares worth $1.88 million in early December, part of $2.75 million in insider sales over 90 days amid a 12% share price gain.
Leadership hires and integrations like Atria and Commonwealth bolster market share, supporting a narrative of 15.6% undervaluation despite trading at a premium P/E multiple.

Sentiment:

🐃Bullish

LPL Financial eyes another earnings beat as analysts turn bullish ahead of Thursday's report.

Zacks Earnings ESP sits at +0.06% paired with a Zacks Rank #3, pointing to heightened analyst optimism after LPL topped estimates by 16.33% and 7.13% in the last two quarters.
CEO Richard Steinmeier offloaded over 5,000 shares worth $1.88 million in early December, part of $2.75 million in insider sales over 90 days amid a 12% share price gain.
Leadership hires and integrations like Atria and Commonwealth bolster market share, supporting a narrative of 15.6% undervaluation despite trading at a premium P/E multiple.

Sentiment:

🐃Bullish

Investment Analysis

LPL Financial

LPLA

Pros

LPL Financial has demonstrated robust organic growth, with advisory and brokerage assets rising to $1.9 trillion and a high advisor retention rate of 98%.
The company recently delivered adjusted EPS of $4.51, beating expectations and reflecting a 16% year-over-year increase, signalling strong profitability.
LPL Financial maintains a leading position in its sector, supported by strategic acquisitions and a focus on expanding its integrated advisory and brokerage platform.

Considerations

LPL Financial carries a relatively high debt-to-equity ratio, which could amplify financial risk during periods of economic stress or market volatility.
Despite strong fundamentals, the stock has shown notable price volatility over the past year, with a wide 52-week trading range.
Recent insider selling activity may raise questions about management’s confidence in the company’s near-term prospects.

Brown & Brown

BRO

Pros

Brown & Brown has consistently exceeded analyst earnings expectations, with recent quarterly revenue growth and a positive organic growth outlook for the coming quarter.
The company benefits from a diversified business model across insurance brokerage, wholesale, and underwriting services, providing resilience against sector-specific headwinds.
Brown & Brown’s integration of recent acquisitions is progressing smoothly, supporting margin expansion and reinforcing its competitive position in the insurance market.

Considerations

Brown & Brown’s dividend yield remains relatively low compared to industry peers, which may limit appeal for income-focused investors.
The stock’s valuation, as reflected in its price-to-earnings ratio, is towards the higher end of its historical range, suggesting limited near-term upside.
Like many insurers, Brown & Brown faces exposure to macroeconomic cycles and potential regulatory changes that could impact profitability.

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