Raymond James vs LPL Financial
This page compares business models, financial performance, and market context for Raymond James and LPL Financial in a neutral, accessible way. It presents plain information to help readers understand how each firm operates within the wealth management and advisory sector. Educational content, not financial advice.
This page compares business models, financial performance, and market context for Raymond James and LPL Financial in a neutral, accessible way. It presents plain information to help readers understand...
Why It's Moving
Raymond James lifts dividends and boosts buyback amid record fiscal 2025 results
- Fiscal 2025 net revenues reached a record $14.07 billion, with net income available to common shareholders rising to $2.13 billion, reflecting robust growth across the business.
- The Board approved an 8% increase in the quarterly common dividend to $0.54, payable January 16, 2026, alongside a new $2 billion stock buyback plan replacing the prior $1.5 billion authorization.
- Though earnings per share beat expectations with adjusted Q4 EPS of $3.11, concerns over declining profit margins have led to mixed investor sentiment despite several analysts raising price targets.
- Record client assets under administration hit $1.73 trillion, with fee-based assets in the Private Client Group up 15% year-over-year, supporting the firm’s revenue stability and growth outlook.
LPL Financial Shares Rally on Strong Q3 Organic Growth and Strategic Pricing Moves
- Q3 organic Funds Under Advisement (FUA) grew by 7%, coupled with a strong underlying FUA retention rate of 98%, signaling robust client loyalty and sustained demand.
- Management announced pricing adjustments expected to improve future margins by approximately 1 percentage point, aiming to better align with industry peers and enhance profitability.
- The integration of the $3.3 billion Commonwealth Financial acquisition shows promising early progress, supporting LPL’s expanding market share in the U.S. retail advisor space despite ongoing synergy realization challenges.
Raymond James lifts dividends and boosts buyback amid record fiscal 2025 results
- Fiscal 2025 net revenues reached a record $14.07 billion, with net income available to common shareholders rising to $2.13 billion, reflecting robust growth across the business.
- The Board approved an 8% increase in the quarterly common dividend to $0.54, payable January 16, 2026, alongside a new $2 billion stock buyback plan replacing the prior $1.5 billion authorization.
- Though earnings per share beat expectations with adjusted Q4 EPS of $3.11, concerns over declining profit margins have led to mixed investor sentiment despite several analysts raising price targets.
- Record client assets under administration hit $1.73 trillion, with fee-based assets in the Private Client Group up 15% year-over-year, supporting the firm’s revenue stability and growth outlook.
LPL Financial Shares Rally on Strong Q3 Organic Growth and Strategic Pricing Moves
- Q3 organic Funds Under Advisement (FUA) grew by 7%, coupled with a strong underlying FUA retention rate of 98%, signaling robust client loyalty and sustained demand.
- Management announced pricing adjustments expected to improve future margins by approximately 1 percentage point, aiming to better align with industry peers and enhance profitability.
- The integration of the $3.3 billion Commonwealth Financial acquisition shows promising early progress, supporting LPL’s expanding market share in the U.S. retail advisor space despite ongoing synergy realization challenges.
Which Baskets Do They Appear In?
Anti-Fragile Systems
Companies that don't just survive market chaos—they thrive on it. These carefully selected stocks are designed to become more profitable during volatility, offering you a unique way to potentially benefit from uncertain times.
Published: June 17, 2025
Explore BasketWhich Baskets Do They Appear In?
Anti-Fragile Systems
Companies that don't just survive market chaos—they thrive on it. These carefully selected stocks are designed to become more profitable during volatility, offering you a unique way to potentially benefit from uncertain times.
Published: June 17, 2025
Explore BasketInvestment Analysis
Pros
- Raymond James has demonstrated solid revenue growth, with a 9.6% increase in the past year driven by strong brokerage and investment banking performance.
- The company maintains a healthy net profit margin of around 15% and a robust return on equity, indicating efficient management and profitability.
- Raymond James operates with a diversified business model across private client, capital markets, and asset management, reducing reliance on any single revenue stream.
Considerations
- Asset management revenue has declined recently, offsetting gains in other segments and raising concerns about diversification effectiveness.
- The stock trades at a higher P/E ratio than some peers, which may limit upside if earnings growth slows or market sentiment shifts.
- Operating expenses have risen, pressuring margins despite strong top-line growth and increased interest income.
LPL Financial
LPLA
Pros
- LPL Financial has delivered strong risk-adjusted returns, outperforming many peers in recent years with a higher Sharpe ratio.
- The company benefits from a scalable business model focused on independent advisors, supporting consistent revenue and margin expansion.
- LPL maintains a relatively low debt-to-equity ratio, providing financial flexibility and resilience during market downturns.
Considerations
- LPL's revenue growth has lagged behind Raymond James, with a smaller increase in top-line performance over the past year.
- The company is more exposed to market volatility due to its heavy reliance on brokerage and advisory fees, which can fluctuate with equity markets.
- LPL has experienced higher drawdowns in previous market corrections, indicating greater downside risk during periods of economic stress.
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