Nomura Holdings Inc ADR (NMR) versus LPL Financial Holdings (LPLA) Head to Head Comparison

Nomura Holdings Inc ADR (NYSE: NMR) and LPL Financial Holdings (NASDAQ:LPLA) are both mid-cap finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Valuation & Earnings

This table compares Nomura Holdings Inc ADR and LPL Financial Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Nomura Holdings Inc ADR $13.11 billion 1.65 $2.41 billion $0.63 9.00
LPL Financial Holdings $4.13 billion 1.16 $560.84 million $2.30 23.10

Nomura Holdings Inc ADR has higher revenue and earnings than LPL Financial Holdings. Nomura Holdings Inc ADR is trading at a lower price-to-earnings ratio than LPL Financial Holdings, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nomura Holdings Inc ADR and LPL Financial Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nomura Holdings Inc ADR 15.47% 8.69% 0.57%
LPL Financial Holdings 5.10% 26.45% 4.70%

Risk & Volatility

Nomura Holdings Inc ADR has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500. Comparatively, LPL Financial Holdings has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500.

Dividends

LPL Financial Holdings pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Nomura Holdings Inc ADR does not pay a dividend. LPL Financial Holdings pays out 43.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent recommendations and price targets for Nomura Holdings Inc ADR and LPL Financial Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nomura Holdings Inc ADR 0 2 1 0 2.33
LPL Financial Holdings 1 2 4 1 2.63

LPL Financial Holdings has a consensus target price of $49.75, suggesting a potential downside of 6.38%. Given LPL Financial Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe LPL Financial Holdings is more favorable than Nomura Holdings Inc ADR.

Institutional & Insider Ownership

0.6% of Nomura Holdings Inc ADR shares are owned by institutional investors. Comparatively, 89.7% of LPL Financial Holdings shares are owned by institutional investors. 4.0% of LPL Financial Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

LPL Financial Holdings beats Nomura Holdings Inc ADR on 12 of the 17 factors compared between the two stocks.

Nomura Holdings Inc ADR Company Profile

Nomura Holdings, Inc. (Nomura) is a financial services company. The Company, through its broker-dealer, banking and other financial services subsidiaries, provide investment, financing and related services to individual, institutional and government clients across the world. The Company’s segments include Retail, Asset Management and Wholesale. Its clients include individuals, corporations, financial institutions, governments and governmental agencies. The Company’s Retail segment provides investment consultation services to individual clients in Japan. The Company’s Asset Management segment develops and manages investment trusts, and provides investment advisory services. The Company’s Wholesale segment is engaged in the sales and trading of debt and equity securities, derivatives, and currencies on a global basis, and provides investment banking services, such as the underwriting of debt and equity securities, as well as mergers and acquisitions and financial advice.

LPL Financial Holdings Company Profile

LPL Financial Holdings Inc. is a broker-dealer, a custodian for registered investment advisors and an independent consultant to retirement plans. The Company provides a platform of brokerage and investment advisory services to independent financial advisors, including financial advisors at financial institutions across the country. It also supported approximately 4,000 financial advisors, affiliated and licensed with insurance companies through customized clearing services, advisory platforms and technology solutions, as of December 31, 2016. Through its advisors, it is a distributor of financial products and services in the United States. It provides its technology and service to advisors through a technology platform that is server-based and Web-accessible. Its technology offerings are designed to permit its advisors to manage various aspects of their businesses. It automates time-consuming processes, such as account opening and management, document imaging and account rebalancing.

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