Head-To-Head Contrast: LPL Financial (NASDAQ:LPLA) & Site Centers (NYSE:SITC)
by Kim Johansen · The Markets DailyLPL Financial (NASDAQ:LPLA – Get Free Report) and Site Centers (NYSE:SITC – Get Free Report) are both finance companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Profitability
This table compares LPL Financial and Site Centers’ 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% |
| Site Centers | 219.18% | 40.56% | 27.81% |
Analyst Ratings
This is a breakdown of current ratings and target prices for LPL Financial and Site Centers, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LPL Financial | 0 | 3 | 14 | 0 | 2.82 |
| Site Centers | 2 | 1 | 0 | 0 | 1.33 |
LPL Financial presently has a consensus price target of $409.69, suggesting a potential upside of 26.66%. Site Centers has a consensus price target of $3.50, suggesting a potential upside of 16.63%. Given LPL Financial’s stronger consensus rating and higher possible upside, equities analysts plainly believe LPL Financial is more favorable than Site Centers.
Institutional and Insider Ownership
95.7% of LPL Financial shares are owned by institutional investors. Comparatively, 88.7% of Site Centers shares are owned by institutional investors. 0.6% of LPL Financial shares are owned by insiders. Comparatively, 0.2% of Site Centers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares LPL Financial and Site Centers”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LPL Financial | $16.99 billion | 1.50 | $863.02 million | $12.54 | 25.79 |
| Site Centers | $113.49 million | 1.39 | $177.86 million | $2.41 | 1.25 |
LPL Financial has higher revenue and earnings than Site Centers. Site Centers is trading at a lower price-to-earnings ratio than LPL Financial, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
LPL Financial has a beta of 0.53, meaning that its share price is 47% less volatile than the S&P 500. Comparatively, Site Centers has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.
Summary
LPL Financial beats Site Centers on 10 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 Site Centers
SITE Centers is an owner and manager of open-air shopping centers located in suburban, high household income communities. The Company is a self-administered and self-managed REIT operating as a fully integrated real estate company, and is publicly traded on the New York Stock Exchange under the ticker symbol SITC.