Reviewing Capital Financial (OTCMKTS:CPFH) & LPL Financial (NASDAQ:LPLA)

LPL Financial (NASDAQ:LPLA – Get Free Report) and Capital Financial (OTCMKTS:CPFH – Get Free Report) are both finance companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Earnings & Valuation

This table compares LPL Financial and Capital Financial”s top-line revenue, earnings per share and valuation.

LPL Financial has higher revenue and earnings than Capital Financial.

Institutional and Insider Ownership

95.7% of LPL Financial shares are owned by institutional investors. 1.3% of LPL Financial shares are owned by company insiders. Comparatively, 54.0% of Capital Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and target prices for LPL Financial and Capital Financial, as provided by MarketBeat.

LPL Financial presently has a consensus price target of $430.13, suggesting a potential upside of 19.54%. Given LPL Financial’s stronger consensus rating and higher probable upside, analysts plainly believe LPL Financial is more favorable than Capital Financial.

Profitability

This table compares LPL Financial and Capital Financial’s net margins, return on equity and return on assets.

Summary

LPL Financial beats Capital Financial on 9 of the 10 factors compared between the two stocks.

About LPL Financial

(Get Free Report)

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 Capital Financial

(Get Free Report)

Capital Financial Holdings, Inc., a full-service brokerage company, provides investment products and services to independent investment representatives, financial planners, and investment advisors in the United States. It offers mutual funds, insurance products, and various other securities, as well as investment advisory services. The company was formerly known as Integrity Mutual Funds, Inc. and changed its name to Capital Financial Holdings, Inc. in May 2009. Capital Financial Holdings, Inc. was founded in 1987 and is headquartered in Minot, North Dakota.